2007 Oregon Code - Chapter 315 :: Chapter 315 - Personal and Corporate Income or Excise Tax Credits
Chapter 315 —
Personal and Corporate Income or Excise Tax Credits
2007 EDITION
INCOME OR EXCISE TAX CREDITS
REVENUE AND TAXATION
GENERAL PROVISIONS
315.004Â Â Â Â Definitions;
adoption of parts of Internal Revenue Code and application of federal laws and
regulations; technical corrections
315.054Â Â Â Â Federal
tax credits allowable only as specified
315.063Â Â Â Â Waiver
of substantiation by Department of Revenue; rules
315.068Â Â Â Â Claim
of right income repayment adjustments
AGRICULTURE; FISHERIES; FORESTRY
315.104Â Â Â Â Reforestation;
rules
315.106Â Â Â Â Reforestation
credit preliminary certificate; application; limitation calculation; rules; fee
315.108Â Â Â Â Annual
reforestation credit cost limitation
315.111Â Â Â Â Legislative
declarations regarding riparian land conservation
315.113Â Â Â Â Voluntary
removal of riparian land from farm production; rules
315.117Â Â Â Â Legislative
findings and declarations regarding on-farm processing
315.119Â Â Â Â On-farm
processing facilities
315.123Â Â Â Â Minimum
production and processing volume requirements; recordkeeping requirements
315.134Â Â Â Â Fish
habitat improvement
315.138Â Â Â Â Screening
devices, by-pass devices or fishways; rules
315.141Â Â Â Â Biomass
production or collection
315.144Â Â Â Â Transfer
of biomass credit
315.154Â Â Â Â Definitions
for crop donation credit
315.156Â Â Â Â Crop
donation; forms
315.163Â Â Â Â Definitions
for ORS 315.163 to 315.172
315.164Â Â Â Â Farmworker
housing projects; rules
315.167Â Â Â Â Farmworker
housing credit application; procedure; limitation; rules
315.169Â Â Â Â Farmworker
housing contributor credit; transfer of farmworker housing owner or operator
credit; continued eligibility; rules
315.172Â Â Â Â Collection
of taxes upon disallowance of farmworker housing credit
CHILDREN AND FAMILIES; POVERTY RELIEF
315.204Â Â Â Â Dependent
care assistance; rules
315.208Â Â Â Â Dependent
care facilities
315.213Â Â Â Â Child
Care Division contributions
315.237Â Â Â Â Employee
and dependent scholarship program payments
315.254Â Â Â Â Youth
apprenticeship sponsorship
315.259Â Â Â Â First
Break Program; rules
315.262Â Â Â Â Working
family child care; rules
315.266Â Â Â Â Earned
income; rules
315.271Â Â Â Â Individual
development accounts
315.272Â Â Â Â Certain
individual development account withdrawals
315.274Â Â Â Â Qualified
adoption expenses
ENVIRONMENT AND ENERGY
315.304Â Â Â Â Pollution
control facilities
315.311Â Â Â Â Emission
reducing production technology or process
315.324Â Â Â Â Plastics
recycling
315.354Â Â Â Â Energy
conservation facilities
315.356Â Â Â Â Other
grants as offset to cost of energy conservation facility; changes in credit
eligibility when taxpayer participates in other programs
(Temporary provisions relating to low emission truck engines are
compiled as notes following ORS 315.356)
(Temporary provisions relating to diesel
engines are compiled as notes following ORS 315.356)
315.357Â Â Â Â Time
limit applicable to energy conservation tax credit
315.465Â Â Â Â Biofuels
and fuel blends
315.469Â Â Â Â Biodiesel
used in home heating
ECONOMIC DEVELOPMENT
315.507Â Â Â Â Electronic
commerce in designated enterprise zone
315.508Â Â Â Â Recordkeeping
requirements for electronic commerce credit; disallowance of credit
315.511Â Â Â Â Advanced
telecommunications facilities
315.514Â Â Â Â Film
production development contributions; rules
315.517Â Â Â Â Water
transit vessels
315.521Â Â Â Â University
venture development fund contributions
HEALTH
315.604Â Â Â Â Bone
marrow donor expense
315.610Â Â Â Â Long
term care insurance
315.613Â Â Â Â Credit
available to persons providing rural medical care and affiliated with certain
rural hospitals
315.616Â Â Â Â Additional
providers who may qualify for credit
315.619Â Â Â Â Credit
for medical staff at type C hospital
315.622Â Â Â Â Rural
emergency medical technicians
315.624Â Â Â Â Medical
care to residents of Oregon VeteransÂ’ Home
315.628Â Â Â Â Health
care services under TRICARE contract
315.631Â Â Â Â Certification
of health care providers; reports
CULTURE
315.675Â Â Â Â Trust
for Cultural Development Account contributions
     315.001 [Enacted as 1953 c.308 §1; repealed by 1965 c.26 §6]
     315.002 [Enacted as 1953 c.308 §2; repealed by 1965
c.26 §6]
     315.003 [Enacted as 1953 c.308 §3; repealed by 1965
c.26 §6]
GENERAL
PROVISIONS
     315.004
Definitions; adoption of parts of Internal Revenue Code and application of federal
laws and regulations; technical corrections. (1) Except when the context requires otherwise, the definitions
contained in ORS chapters 314, 316, 317 and 318 are applicable in the
construction, interpretation and application of the personal and corporate
income and excise tax credits contained in this chapter.
     (2)(a) For purposes of the tax credits
contained in this chapter, any term has the same meaning as when used in a
comparable context in the laws of the
     (b) With respect to the tax credits
contained in this chapter, any reference to the laws of the United States or to
the Internal Revenue Code means the laws of the United States relating to
income taxes or the Internal Revenue Code as they are amended on or before
December 31, 2006, even when the amendments take effect or become operative
after that date.
     (3) Insofar as is practicable in the
administration of this chapter, the Department of Revenue shall apply and
follow the administrative and judicial interpretations of the federal income
tax law. When a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the department shall follow
the rule observed by the United States Commissioner of Internal Revenue until
the conflict is resolved. Nothing contained in this section limits the right or
duty of the department to audit the return of any taxpayer or to determine any
fact relating to the tax liability of any taxpayer.
     (4) When portions of the Internal Revenue
Code incorporated by reference as provided in subsection (2) of this section
refer to rules or regulations prescribed by the Secretary of the Treasury, then
such rules or regulations shall be regarded as rules adopted by the department
under and in accordance with the provisions of this chapter, whenever they are
prescribed or amended.
     (5)(a) When portions of the Internal
Revenue Code incorporated by reference as provided in subsection (2) of this
section are later corrected by an Act or a Title within an Act of the United
States Congress designated as an Act or Title making technical corrections,
then notwithstanding the date that the Act or Title becomes law, those portions
of the Internal Revenue Code, as so corrected, shall be the portions of the
Internal Revenue Code incorporated by reference as provided in subsection (2)
of this section and shall take effect, unless otherwise indicated by the Act or
Title (in which case the provisions shall take effect as indicated in the Act
or Title), as if originally included in the provisions of the Act being
technically corrected. If, on account of this subsection, any adjustment is
required to an
     (b) As used in this subsection, “Act or
Title” includes any subtitle, division or other part of an Act or Title. [1993
c.730 §2; 1995 c.556 §34; 1997 c.839 §64; 1999 c.90 §7; 2001 c.660 §34; 2003
c.77 §11; 2005 c.832 §24; 2007 c.614 §11]
     315.005 [Repealed by 1965 c.26 §6]
     315.010 [Amended by 1953 c.325 §3; repealed by 1965
c.26 §6]
     315.015 [Repealed by 1965 c.26 §6]
     315.020 [Repealed by 1965 c.26 §6]
     315.025 [Repealed by 1965 c.26 §6]
     315.030 [Repealed by 1965 c.26 §6]
     315.035 [Repealed by 1965 c.26 §6]
     315.040 [Repealed by 1965 c.26 §6]
     315.045 [Repealed by 1965 c.26 §6]
     315.054
Federal tax credits allowable only as specified. No credits applied directly to the income
tax calculated for federal purposes pursuant to the Internal Revenue Code shall
be applied in calculating the tax due under ORS chapter 314, 316, 317 or 318
except those prescribed in this chapter or ORS chapter 314, 316, 317 or 318. [1993
c.730 §4 (enacted in lieu of 316.107)]
     315.055 [Repealed by 1965 c.26 §6]
     315.060 [Repealed by 1965 c.26 §6]
     315.063
Waiver of substantiation by Department of Revenue; rules. The Department of Revenue, by rule, may
waive partially, conditionally or absolutely requirements for proof or
substantiation of claims for subtractions, exclusions, exemptions or credits
allowable for purposes of taxes imposed upon or measured by net income. [1995
c.54 §2]
     315.065 [Repealed by 1965 c.26 §6]
     315.068
Claim of right income repayment adjustments. (1) A credit against the taxes otherwise due under ORS chapter 316
(or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be
allowed to a taxpayer for a claim of right income repayment adjustment.
     (2) The credit shall be allowed under this
section only if the taxpayerÂ’s federal tax liability is determined under
section 1341(a) of the Internal Revenue Code.
     (3) The amount of the credit shall equal
the difference between:
     (a) The taxpayer’s actual
     (b) The taxpayer’s
     (4) A credit under this section shall be
allowed only for the tax year for which the taxpayerÂ’s federal tax liability is
determined under section 1341 of the Internal Revenue Code for federal tax
purposes.
     (5) If the amount allowable as a credit
under this section, when added to the sum of the amounts allowable as a payment
of tax under ORS 314.505 to 314.525, 316.187 and 316.583, other payments of tax
and other refundable credit amounts, exceeds the taxes imposed by ORS chapters
314 to 318 (reduced by any nonrefundable credits allowed for the tax year), the
excess shall be treated as an overpayment of tax and shall be refunded or
applied in the same manner as other tax overpayments.
     (6) As used in this section, “claim of
right income” means:
     (a) An item included in federal gross
income for a prior tax year because it appeared that the taxpayer had an
unrestricted right to the item; and
     (b) An item for which the taxpayer’s
federal tax liability is adjusted under section 1341 of the Internal Revenue
Code because the taxpayer did not have an unrestricted right to the item of
gross income. [1999 c.1007 §2; 2001 c.660 §19]
     315.070 [Repealed by 1965 c.26 §6]
     315.075 [Repealed by 1965 c.26 §6]
     315.080 [Repealed by 1965 c.26 §6]
     315.085 [Repealed by 1965 c.26 §6]
     315.090 [Repealed by 1965 c.26 §6]
     315.095 [Repealed by 1965 c.26 §6]
AGRICULTURE;
FISHERIES; FORESTRY
     315.104
Reforestation; rules. (1) A
credit against the taxes otherwise due under ORS chapter 316 (or if the
taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed in an
amount equal to 50 percent of reforestation project costs actually paid or
incurred to reforest underproductive Oregon forestlands. Such costs include,
but are not limited to, any fees established by the State Forester under ORS
315.106 (4), site preparation, tree planting and other silviculture treatments
considered necessary by the State Forester to establish commercial, hardwood or
softwood stands on appropriate sites. Subject to subsection (5) of this
section:
     (a) One-half of the credit shall be taken
in the tax year for which the State Forester, after physical inspection of the
forestland, issues a preliminary certificate under ORS 315.106 certifying that
the land qualifies as underproductive Oregon forestland and that the
reforestation project undertaken meets the requirements of this section and the
specifications established by the State Forester and the costs appear to be
reasonable; and
     (b) One-half of the credit shall be taken
in the tax year for which the State Forester, after further physical inspection
of the land and project, certifies that the new forest is established in
accordance with the specifications of the State Forester.
     (2) No credit shall be allowed under
either subsection (1)(a) or (b) of this section unless written certification
containing the following statements accompanies the claim for the credit or is
otherwise filed with the Department of Revenue:
     (a) A preliminary certificate issued by
the State Forester under ORS 315.106 that the land and project meet the
preliminary specifications established by the State Forester or that the new
forest is established, whichever is applicable at the time.
     (b) A statement by the landowner or person
in possession of the land that the land within the project area will be used
for the primary purpose of growing and harvesting trees of an acceptable
species.
     (c) A statement that the landowner or
person in possession of the land is aware that maintenance practices, including
release, may be needed to insure that a new forest is established and will remain
established.
     (3) For purposes of this section,
reforestation project costs shall not include:
     (a) Costs paid or incurred to reforest any
forestland that has been commercially logged to the extent that reforestation
is required under the Oregon Forest Practices Act, except costs paid or
incurred to reforest forestland following a hardwood harvest, conducted for the
purposes of converting underproductive forestlands, as determined by
administrative rule.
     (b) That portion of costs or expenses paid
through a federal or state cost share, financial assistance or other incentive
program.
     (c) Those costs paid or incurred to grow
Christmas trees, ornamental trees, shrubs or plants, or those costs paid or
incurred to grow hardwood timber described under ORS 321.267 (3) or 321.824
(3).
     (d) Any costs paid or incurred to purchase
or otherwise acquire the land.
     (e) The cost of purchase or other
acquisition of tools and equipment with a useful life of more than one year.
     (4) To qualify for the credit:
     (a) The project must be completed to
specifications approved by the State Forester.
     (b) The taxpayer’s portion of the project
costs must be $500 or more.
     (c) The taxpayer must be a private
individual, corporation, group, Indian tribe or other native group, association
or other nonpublic legal entity owning, purchasing under recorded contract of
sale or leasing at least five acres of
     (d) Prior to December 31, 2022, the
taxpayer must file with the State Forester a written request for preliminary
certification under ORS 315.106.
     (5) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter. In all cases the taxpayer must be the
person who made the investment into the project.
     (6) The credit provided by this section
shall be in addition to and not in lieu of any depreciation or amortization
deduction to which the taxpayer otherwise may be entitled with respect to the
reforestation project and the credit shall not affect the computation of basis
for the property.
     (7) In compliance with ORS chapter 183,
the Department of Revenue and the State Forestry Department may adopt rules
consistent with law for carrying out the provisions of this section.
     (8) As used in this section, “underproductive
     (9) If, for any reason other than those
specified in subsection (10) of this section, a new forest is not established
by the last day of the second taxable year following the taxable year for which
the preliminary certificate was issued, the State Forester shall so report to
the Department of Revenue. The report filed under this subsection shall be the
basis for the department to recover any credit granted under subsection (1)(a)
of this section. If, however, the new forest is not established within the time
required by this subsection on account of the reasons specified in subsection
(10) of this section, any credit allowed under subsections (1)(a) and (5) of
this section shall not be recovered but no further credit as provided under
subsections (1)(b) and (5) of this section shall be allowed.
     (10) Subject to requalification under this
section in the manner applicable for the original claim, including obtaining a
new preliminary certificate, a taxpayer may claim an additional credit or
credits for reestablishing a new planting in the event that the new forest is
destroyed by a natural disaster or is not established for reasons beyond the
control of the taxpayer, if the measures taken in completing the original or
earlier project would normally have resulted in establishing the minimum number
of trees per acre anticipated by the project.
     (11) Any owner affected by a
determination, regarding the reforestation tax credit made by:
     (a) The State Forester, except for a
denial of a request for a preliminary certificate due to the annual
reforestation credit cost limitation calculated under ORS 315.108, may appeal
that determination in the manner provided for in ORS 526.475 (1).
     (b) The Department of Revenue, may appeal
that determination in the manner provided for in ORS 526.475 (2). [1993 c.730 §8
(enacted in lieu of 316.094, 317.102 and 318.110); 1995 c.746 §23; 2001 c.359 §1;
2003 c.454 §122; 2003 c.621 §97a; 2007 c.883 §1]
     Note: Section 2, chapter 883, Oregon Laws 2007,
provides:
     Sec.
2. The amendments to ORS
315.104 by section 1 of this 2007 Act apply to tax credits claimed for tax
years beginning on or after January 1, 2008. [2007 c.883 §2]
     Note: Section 5, chapter 605, Oregon Laws 1987,
provides:
     Sec.
5. No tax credit shall be
allowed under ORS 315.104 based upon reforestation project costs if the
preliminary certificate is not issued on or before December 31, 2011. [1987
c.605 §5; 1989 c.887 §4; 1995 c.746 §28; 2001 c.359 §3]
     Note: 315.104 is repealed January 2, 2028. See
section 9, chapter 883, Oregon Laws 2007.
     315.105 [Repealed by 1965 c.26 §6]
     315.106
Reforestation credit preliminary certificate; application; limitation
calculation; rules; fee. (1)
A taxpayer claiming the credit provided under ORS 315.104 shall file a written
request with the State Forester for a preliminary certificate. The request
shall contain:
     (a) Information that is required by the
State Forester by rule;
     (b) An estimate of the amount of the
credit the taxpayer expects to claim under ORS 315.104 (1)(a); and
     (c) Payment of any fee required by the
State Forester by rule adopted under subsection (4) of this section.
     (2) The State Forester shall consider
requests for preliminary certificates in the chronological order in which the
requests are filed with the State Forester. If the State Forester determines
that the request complies with ORS 315.104 (1)(a), the State Forester shall
issue the preliminary certificate to the taxpayer, to the extent the total
amount of estimated claims for credit under ORS 315.104 (1)(a) for all
preliminary certificates issued for the calendar year do not exceed the annual
reforestation credit cost limitation calculated under ORS 315.108.
     (3) The State Forester may not issue a
preliminary certificate to a taxpayer to the extent the estimated claim for
credit under ORS 315.104 (1)(a) contained in the request for a preliminary
certificate, when added to the total of estimated claims for credit under ORS
315.104 (1)(a) for all preliminary certificates issued by the State Forester
for the calendar year, exceeds the annual reforestation credit cost limitation
calculated under ORS 315.108.
     (4) The State Forester shall establish by
rule a fee for filing a written request for a preliminary certificate under
this section. The fee shall be adequate to recover the costs incurred by the
State Forestry Department in administering the reforestation tax credit program
established under this section and ORS 315.104 and 315.108.
     (5) Moneys collected from fees established
by the State Forester under rules adopted under this section shall be deposited
in the State Forestry Department Account to be used for the purposes of
administering the reforestation tax credit program. [1995 c.746 §25; 2005 c.796
§3]
     Note: 315.106 is repealed January 2, 2028. See
section 9, chapter 883, Oregon Laws 2007.
     315.108
Annual reforestation credit cost limitation. (1) On or before January 1, 1996, the State Forester shall determine
an average annual amount of estimated reforestation project costs for which
credit was claimed under ORS 315.104 (1)(a) during the period from July 1,
1992, to July 1, 1994.
     (2) The annual reforestation credit cost
limitation shall be:
     (a) Equal to the average annual amount of
estimated reforestation project costs determined under subsection (1) of this
section for the calendar year beginning January 1, 1996.
     (b) Twice the average annual amount of
estimated reforestation project costs determined under subsection (1) of this
section for years beginning on or after January 1, 1997. [1995 c.746 §26]
     Note: 315.108 is repealed January 2, 2028. See
section 9, chapter 883, Oregon Laws 2007.
     315.110 [Amended by 1953 c.665 §2; repealed by 1965
c.26 §6]
     315.111
Legislative declarations regarding riparian land conservation. The Legislative Assembly declares that the
purpose of ORS 315.113 is to encourage taxpayers that have riparian land in
farm production to voluntarily remove the riparian land from farm production
and employ conservation practices applicable to the riparian land that minimize
contributions to undesirable water quality, habitat degradation and stream bank
erosion. [2001 c.912 §2]
     315.113
Voluntary removal of riparian land from farm production; rules. (1) As used in this section:
     (a) “Crop” means the total yearly
production of an agricultural commodity, not including livestock, that is
harvested from a specified area.
     (b) “Riparian land” means land in this
state that:
     (A) Borders both a river, stream or other
natural watercourse and land that is in farm production; and
     (B) Does not exceed a width of 35 feet
between the land that is in farm production and the bank of the river, stream
or other natural watercourse.
     (c) “Share-rent agreement” means an
agreement in which the person who engages in farming operations and the person
who owns the land where the farming operations are conducted share the crop
grown on that land or the profits from that crop.
     (2) A taxpayer may claim a credit against
the taxes otherwise due under ORS chapter 316, 317 or 318 for 75 percent of the
market value of crops forgone when riparian land is voluntarily taken out of
farm production.
     (3) A credit under this section may be
claimed only if:
     (a) The taxpayer owns the riparian land
that is the basis of the credit;
     (b) The taxpayer is actively engaged in
farming operations on land adjacent to the riparian land;
     (c) The riparian land was in farm
production for the previous tax year or a credit under this section was claimed
during the previous tax year;
     (d) The conservation practices employed on
the riparian land are consistent with the agricultural water quality management
plan administered by the State Department of Agriculture in the applicable
river basin management area; and
     (e) The decision to remove the riparian
land from farm production was a voluntary decision and not the result of a
federal, state or local law or government decision requiring the riparian land
to be taken out of farm production. For purposes of this paragraph, action
taken by a taxpayer under an agricultural water quality management plan
administered by the State Department of Agriculture is not the result of a
government decision requiring the land to be taken out of farm production.
     (4)(a) The amount of the credit shall be
calculated by multiplying the market value per acre of the forgone crop by the
acreage of the riparian land that is not in farm production and multiplying
that product by 75 percent.
     (b) For the first tax year for which a
credit is claimed under this section, the forgone crop for which a value is
determined under this section shall be the crop grown on the land in the
previous tax year.
     (c) For a tax year following the first tax
year for which a credit is claimed under this section, the forgone crop for
which a value is determined under this section shall be the crop for which the
value was determined for the previous tax year.
     (d) If a taxpayer does not claim a credit
under this section for a tax year, any credit claimed in a subsequent tax year
shall be treated as the first tax year for which a credit is claimed under this
section.
     (5) Notwithstanding subsection (3)(a) and
(b) of this section, if the riparian land that is the basis of a credit under
this section is adjacent to land that is in farm production under a share-rent
agreement, the taxpayer that is engaged in farming operations and the taxpayer
that is the landowner may each claim a credit under this section. The amount of
the credit shall be allocated to each taxpayer in the proportion that the
share-rent agreement allocates crop proceeds to each of those taxpayers. The
total amount of credit allowed to both taxpayers under this subsection may not
exceed the amount of the credit otherwise allowable under this section if the
farming operations were not subject to a share-rent agreement.
     (6) Notwithstanding subsections (3)(a) and
(5) of this section, if the taxpayer is actively engaged in farming operations
and pays the landowner in cash, the taxpayer may claim all of the credit
available under this section.
     (7) The credit allowed in any one tax year
may not exceed the tax liability of the taxpayer.
     (8) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year. Any
credit remaining unused in the second succeeding tax year may be carried
forward and used in the third succeeding tax year. Any credit remaining unused
in the third succeeding tax year may be carried forward and used in the fourth
succeeding tax year. Any credit remaining unused in the fourth succeeding tax
year may be carried forward and used in the fifth succeeding tax year, but may
not be used in any tax year thereafter.
     (9) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit in the same manner and subject to the same limitations as a resident.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085 or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (10) If a taxpayer that has claimed a
credit under this section places the riparian land for which the credit is
claimed back in farm production, the taxpayer may not claim a credit under this
section for five tax years following the year the riparian land was placed back
in farm production.
     (11) The Department of Revenue may adopt
rules prescribing procedures for identifying forgone crops and for establishing
the market value of forgone crops. [2001 c.912 §3; 2003 c.46 §32]
     315.115 [Repealed by 1965 c.26 §6]
     315.117
Legislative findings and declarations regarding on-farm processing. The Legislative Assembly finds that farming
and related agricultural activities make significant contributions to the
economy of this state and that the contributions of family farms are important
in maintaining the agricultural diversity upon which consistent economic
performance is based. The Legislative Assembly further finds that changes in
the marketplace and in the expectations of consumers of agricultural products
have resulted in a need for greater vertical integration and on-farm processing
of agricultural commodities. The Legislative Assembly declares that an income
tax credit for property taxes paid on on-farm processing machinery and
equipment encourages the continued operation and expansion of on-farm
processing and results in a greater share of the value of agricultural products
being retained by the farms in this state. The Legislative Assembly further
declares that an incentive in the form of an income tax credit does not
adversely impact the revenues of local governments in this state. [2001 c.725 §2]
     315.119
On-farm processing facilities.
(1) As used in this section:
     (a) “Effective property tax rate” means:
     (A) The ratio of the total amount of
property taxes imposed on the account that contains the machinery and equipment
for which a credit is being claimed (after application of ORS 310.150 but prior
to discount under ORS 311.505) over the assessed value of the property tax
account; and
     (B) The ratio determined under
subparagraph (A) of this paragraph for the property tax year that begins in the
income tax year for which the credit is claimed.
     (b) “Farm operator” means a person that
operates a farming business as defined in section 263A of the Internal Revenue
Code.
     (c) “Machinery and equipment” means
machinery and equipment that meets the definition of section 1245 property in
section 1245 of the Internal Revenue Code.
     (d) “Processing”:
     (A) Means any activity that is directly
related and necessary to clean, sort, grade, produce, prepare, manufacture,
handle, package, store or ship a farm crop or livestock product after the point
of harvest and before the point of sale, in a modified state or altered form.
     (B) Does not include an activity primarily
associated with the promotion or retail sale of a product for personal or
household use that is normally sold through consumer retail distribution.
     (e) “Qualified machinery and equipment”
means machinery and equipment used in processing that meets the requirements of
subsections (3) and (4) of this section for the tax year.
     (2) A taxpayer who is a farm operator may
claim a credit against the taxes that are otherwise due under ORS chapter 316
or, if the taxpayer is a corporation, under ORS chapter 317 or 318 for ad
valorem property taxes paid or incurred on qualified machinery and equipment.
     (3) A credit under this section may be
claimed only if:
     (a) The machinery and equipment is owned
by the farm operator or by a person who is related to the farm operator under
section 267 of the Internal Revenue Code;
     (b) The machinery and equipment is used
for processing primarily occurring on land described in subsection (4) of this
section; and
     (c)(A) The farm operator has grown or
raised at least one-half of the total volume of farm crop or livestock products
processed with the machinery and equipment for which the credit is being
claimed in three of the five previous income tax years; or
     (B)(i) The farm operator has grown or
raised at least one-tenth of the total volume of farm crop or livestock
products processed with the machinery and equipment for which the credit is
being claimed in three of the five previous income tax years; and
     (ii) The farm operator has used the
machinery and equipment to process at least one-half of the volume of the
applicable farm crop or livestock products grown or raised by the farm operator
in three of the five previous income tax years.
     (4) In addition to the requirements under
subsection (3) of this section, a credit under this section may be claimed only
if:
     (a) The machinery and equipment is located
on land that is specially assessed for farm use under ORS 308A.050 to 308A.128
and the machinery and equipment is owned or otherwise controlled by the farm
operator; or
     (b) The machinery and equipment is located
on land that is contiguous to land that is specially assessed for farm use
under ORS 308A.050 to 308A.128 and the machinery and equipment is owned or
otherwise controlled by the farm operator.
     (5) A credit may be claimed under this
section only for qualified machinery and equipment that was subject to
assessment and property taxation for the property tax year beginning in the
income tax year for which the credit is being claimed.
     (6) The amount of the credit shall be the
lesser of:
     (a) The effective property tax rate
multiplied by the adjusted basis of the qualified machinery and equipment; or
     (b) $30,000.
     (7) The adjusted basis of the qualified
machinery and equipment shall be the adjusted basis of the qualified machinery
and equipment for personal income or corporate excise or income tax purposes as
of the last day of the income tax year for which the credit is being claimed,
except that the adjusted basis shall be increased by the cost of any qualified
machinery and equipment that the taxpayer elected to expense under section 179
of the Internal Revenue Code, until the qualified machinery and equipment is fully
depreciated for personal income or corporate excise or income tax purposes. The
adjusted basis shall reflect any depreciation allowable for the current tax
year. A credit under this section may not be allowed for a tax year in which
the qualified machinery and equipment is fully depreciated for personal income
or corporate excise or income tax purposes.
     (8) The credit allowed under this section
for any one tax year may not exceed the tax liability of the taxpayer.
     (9) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (10) The credit allowed under this section
is not in lieu of any depreciation or amortization deduction to which the
taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for the
tax year.
     (11) The taxpayer’s adjusted basis for
determining gain or loss may not be further decreased by any amount of credit
allowed under this section.
     (12) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (13) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed under this section shall be determined in a manner
consistent with ORS 316.117.
     (14) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085. [2001 c.725 §3]
     Note: Section 5, chapter 725, Oregon Laws 2001,
provides:
     Sec.
5. (1) Sections 3 and 4 of
this 2001 Act [315.119 and 315.123] apply to tax years beginning on or after
January 1, 2002.
     (2) Except as provided in section 3 (9) of
this 2001 Act [315.119 (9)], credits allowed under section 3 of this 2001 Act
apply to tax years beginning before January 1, 2008. [2001 c.725 §5]
     315.120 [Amended by 1953 c.132 §3; repealed by 1965
c.26 §6]
     315.123
Minimum production and processing volume requirements; recordkeeping
requirements. (1) For the
first three tax years in which a taxpayer claims a credit under ORS 315.119, a
taxpayer shall be deemed to have complied with the applicable minimum
production and processing volume requirements of ORS 315.119 (3)(c) if the
taxpayer has satisfied these requirements for the preceding tax year.
     (2) For the fourth tax year in which a
taxpayer claims a credit under ORS 315.119, the taxpayer shall be deemed to
have complied with the applicable minimum production and processing volume
requirements of ORS 315.119 (3)(c) if the taxpayer has satisfied these
requirements for the preceding tax year and at least one of the three tax years
immediately prior to the preceding tax year.
     (3) For each tax year in which a credit is
claimed under ORS 315.119, the taxpayer shall maintain records sufficient to
determine the taxpayerÂ’s production and processing volume for purposes of ORS
315.119 (3)(c). A taxpayer shall maintain the records required under this
subsection for at least 10 years. [2001 c.725 §4]
     Note: See note under 315.119.
     315.125 [Enacted as 1953 c.197 §2; repealed by 1965
c.26 §6]
     315.134
Fish habitat improvement.
(1) A resident individual shall be allowed a credit against the taxes otherwise
due under ORS chapter 316 (or if the taxpayer is a corporation, the corporation
shall be allowed a credit against the taxes otherwise due under ORS chapter 317
or 318), based upon the cost of a fish habitat improvement project certified
under ORS 496.260. The amount of the credit shall be 25 percent of the amount
certified.
     (2) To qualify for the credit under this
section:
     (a) The fish habitat improvement project
must have been given final certification by the State Department of Fish and
Wildlife as provided in ORS 496.260.
     (b) The credit must be claimed for the
year in which final certification for the project is granted.
     (c) The taxpayer who is allowed the credit
must be the person or entity who actually expended funds for construction or
installation of the project.
     (d) The fish habitat improvement project
must not be required by existing federal or state statute.
     (3) The credit allowed in any one year
shall not exceed the tax liability of the taxpayer.
     (4) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (5) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each.
     (d) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (6) The tax claim for tax credit shall be
substantiated by submission, with the tax return, of the State Department of
Fish and Wildlife notice of final project certification. The requirement for
substantiation may be waived partially, conditionally or absolutely, as
provided under ORS 315.063. [1993 c.730 §10 (enacted in lieu of 316.084,
317.133 and 318.080); 1995 c.54 §3]
     315.138
Screening devices, by-pass devices or fishways; rules. (1) There shall be allowed a credit against
tax due under ORS chapter 316, or if the taxpayer is a corporation, under ORS
chapter 317, for taxpayers that install screening devices, by-pass devices or
fishways, pursuant to ORS 498.306 or 509.585, and the diversion is not part of
a hydroelectric project required to be licensed under the Federal Energy
Regulatory Commission. Except as allowed in subsection (4) of this section, the
credit shall be taken in the tax year in which the final certification is
issued under subsection (10) of this section.
     (2) The credit shall be equal to 50
percent of the taxpayerÂ’s net certified costs of installing a screening device,
by-pass device or fishway. The total credit allowed shall not exceed $5,000 per
device installed.
     (3) The credit allowed in any one year
shall not exceed the tax liability of the taxpayer.
     (4) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year. Any
credit remaining unused in such second succeeding tax year may be carried
forward and used in the third succeeding tax year. Any credit remaining unused
in such third succeeding tax year may be carried forward and used in the fourth
succeeding tax year. Any credit remaining unused in such fourth succeeding tax
year may be carried forward and used in the fifth succeeding tax year, but may
not be used in any tax year thereafter.
     (5) The credit provided by this section
shall be in addition to and not in lieu of any depreciation or amortization
deduction to which the taxpayer otherwise may be entitled with respect to the
installation of a screening device, by-pass device or fishway. The taxpayerÂ’s
adjusted basis for determining gain or loss shall not be further decreased by
any tax credits allowed under this section.
     (6) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit in the same manner and subject to the same limitations as a resident.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (7) To qualify for the credit the taxpayer
must be issued a certificate by the State Department of Fish and Wildlife.
     (8) To obtain credit under subsection (1)
of this section, any person proposing to apply for certification of a screening
device, by-pass device or fishway, before installing the screening device,
by-pass device or fishway, shall file a request for preliminary certification
with the State Department of Fish and Wildlife. The request shall be in a form
prescribed by the State Department of Fish and Wildlife. The following
conditions shall apply:
     (a) Within 30 days of the receipt of a
request for preliminary certification, the State Department of Fish and
Wildlife may require, as a condition precedent to issuance of a preliminary
certificate of approval, the submission of plans and specifications. After
examination thereof, the State Department of Fish and Wildlife may request
corrections and revisions to the plans and specifications. The State Department
of Fish and Wildlife may also require any pertinent information necessary to
determine whether the proposed screening device, by-pass device or fishway is
in accordance with State Department of Fish and Wildlife requirements.
     (b) If the State Department of Fish and
Wildlife determines that the proposed screening device, by-pass device or
fishway is in accordance with State Department of Fish and Wildlife
requirements, it shall issue a preliminary certificate approving the screening
device, by-pass device or fishway. If the State Department of Fish and Wildlife
determines that the screening device, by-pass device or fishway does not comply
with State Department of Fish and Wildlife requirements, the State Department
of Fish and Wildlife shall issue an order denying certification.
     (c) If within 90 days of the receipt of
plans, specifications or any subsequently requested revisions or corrections to
the plans and specifications or any other information required pursuant to this
section, the State Department of Fish and Wildlife fails to issue a preliminary
certificate of approval and the State Department of Fish and Wildlife fails to
issue an order denying certification, the preliminary certificate shall be
considered to have been issued. The capital investment must comply with the
plans, specifications and any corrections or revisions thereto, if any,
previously submitted.
     (d) Within 30 days from the date of
mailing of the order, any person against whom an order is directed pursuant to
paragraph (b) of this subsection may demand a hearing. The demand shall be in
writing, shall state the grounds for hearing and shall be mailed to the State
Fish and Wildlife Director. The hearing shall be conducted in accordance with
the applicable provisions of ORS chapter 183.
     (9) A screening device, by-pass device or
fishway that is installed by the State Department of Fish and Wildlife pursuant
to ORS 498.306 (8) in response to noncompliance by the person responsible for
the water diversion is not eligible for the credit provided in subsection (1)
of this section.
     (10) Upon completion and pursuant to
application for final certification, final certification shall be issued by the
State Department of Fish and Wildlife if the screening device, by-pass device
or fishway was constructed and installed in accordance with State Department of
Fish and Wildlife requirements. Final certification shall include a statement
of the costs of installation as verified by the State Department of Fish and
Wildlife. The credit allowed under this section shall be claimed first for the
tax year of the taxpayer in which final certification is issued.
     (11) Pursuant to the procedures for a
contested case under ORS chapter 183, the State Department of Fish and Wildlife
may order the revocation of the certificate issued under this section of any
taxpayer, if it finds that:
     (a) The certificate was obtained by fraud
or misrepresentation; or
     (b) The holder of the certificate fails to
meet State Department of Fish and Wildlife requirements.
     (12) As soon as the order of revocation
under this section has become final the State Department of Fish and Wildlife
shall notify the Department of Revenue of such order.
     (13) If the certificate of a screening
device, by-pass device or fishway is ordered revoked pursuant to subsection
(11) of this section, all prior tax relief provided to the holder of the certificate
by virtue of the certificate shall be forfeited and the Department of Revenue
shall proceed to collect those taxes not paid by the certificate holder as a
result of the tax relief provided to the holder.
     (14) If the certificate of a screening device,
by-pass device or fishway is ordered revoked pursuant to subsection (11) of
this section, the certificate holder shall be denied any further relief
provided under this section in connection with the screening device, by-pass
device or fishway, as the case may be, from and after the date that the order
of revocation becomes final.
     (15) In the event that the screening
device, by-pass device or fishway is destroyed by flood, natural disaster or
act of God before all of the credit has been used, the taxpayer may
nevertheless claim the credit as if no destruction had taken place.
     (16) Screening devices, by-pass devices or
fishways that are financed by funds obtained from the Water Development Fund,
pursuant to ORS 541.700 to 541.855, shall not be eligible for the credit under
any circumstances.
     (17) The State Department of Fish and
Wildlife shall adopt rules for carrying out the provisions of this section and
report to the interim committee created under ORS 171.605 to 171.640 to make
studies of and inquiries into state revenue matters. [1993 c.730 §12 (enacted
in lieu of 316.139 and 317.145); 2001 c.923 §5; 2007 c.625 §2]
     Note: Section 17, chapter 625, Oregon Laws 2007,
provides:
     Sec.
17. The amendments to ORS
315.138 by section 2 of this 2007 Act apply to tax credits for screening
devices, by-pass devices and fishways first claimed in tax years beginning on
or after January 1, 2008, and before January 1, 2014. [2007 c.625 §17]
     Note: 315.138 is repealed January 2, 2014. See
sections 2a and 2b, chapter 625, Oregon Laws 2007.
     315.141
Biomass production or collection. (1) As used in this section:
     (a) “Agricultural producer” means a person
that produces biomass that is used in
     (b) “Biofuel” means liquid, gaseous or
solid fuels derived from biomass.
     (c) “Biomass” means organic matter that is
available on a renewable or recurring basis and that is derived from:
     (A)
     (B) Wood material from hardwood timber
described in ORS 321.267 (3);
     (C) Agricultural residues;
     (D) Offal and tallow from animal
rendering;
     (E) Food wastes collected as provided
under ORS chapter 459 or 459A;
     (F) Yard or wood debris collected as
provided under ORS chapter 459 or 459A;
     (G) Wastewater solids; or
     (H) Crops grown solely to be used for
energy.
     (d) “Biomass” does not mean wood that has
been treated with creosote, pentachlorophenol, inorganic arsenic or other
inorganic chemical compounds.
     (e) “Biomass collector” means a person
that collects biomass to be used in
     (2)(a) An agricultural producer or biomass
collector shall be allowed a credit against the taxes that would otherwise be
due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318 for:
     (A) The production of biomass that is used
in
     (B) The collection of biomass that is used
in
     (b) A credit under this section may be
claimed in the tax year in which the agricultural producer or biomass collector
transfers biomass to a biofuel producer.
     (c) Notwithstanding paragraph (a) of this
subsection, a tax credit is not allowed for grain corn, but a tax credit shall
be allowed for other corn material.
     (3) The amount of the credit shall be
calculated as follows:
     (a) Determine the quantity of biomass
transferred to a biofuel producer during the tax year;
     (b) Categorize the biomass into
appropriate categories; and
     (c) Multiply the quantity of biomass in a
particular category by the appropriate credit rate for that category, expressed
in dollars and cents, that is prescribed in ORS 469.790.
     (4) The amount of the credit claimed under
this section for any tax year may not exceed the tax liability of the taxpayer.
     (5)(a) A biofuel producer shall provide a
written receipt to an agricultural producer or biomass collector at the time
biomass is transferred from the agricultural producer or biomass collector to
the biofuel producer. The receipt must state the quantity and type of biomass
being transferred and that the biomass is to be used to produce biofuel.
     (b) Each agricultural producer or biomass
collector shall maintain the receipts described in this subsection in their
records for a period of at least five years after the tax year in which the
credit is claimed or for a longer period of time prescribed by the Department
of Revenue.
     (6) The credit shall be claimed on a form
prescribed by the Department of Revenue that contains the information required
by the department.
     (7) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
     (8) In the case of a credit allowed under
this section:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of the
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) If a change in the taxable year of the
taxpayer occurs as described in ORS 314.085, or if the department terminates
the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS 314.085. [2007
c.739 §2; 2007 c.590 §4]
     Note: Section 6, chapter 739, Oregon Laws 2007,
provides:
     Sec.
6. (1) Sections 2 [315.141],
3 [315.144] and 5 [469.790], chapter 739, Oregon Laws 2007, apply to tax
credits for tax years beginning on or after January 1, 2007, and before January
1, 2013.
     (2) Notwithstanding subsection (1) of this
section, a tax credit is not allowed for wheat grain (other than nongrain wheat
material) before tax years beginning on or after January 1, 2009, or on or
after January 1, 2013. [2007 c.739 §6; 2007 c.590 §5]
     315.144
Transfer of biomass credit.
(1) A person that has obtained a tax credit under ORS 315.141 may transfer the
credit for consideration to a taxpayer subject to tax under ORS chapter 316,
317 or 318.
     (2) To transfer the tax credit, the
taxpayer earning the credit and the taxpayer that will claim the credit shall
jointly file a notice of tax credit transfer with the Department of Revenue.
The notice shall be given on a form prescribed by the department that contains
all of the following:
     (a) The name, address and taxpayer
identification number of the transferor and transferee;
     (b) The amount of the tax credit; and
     (c) Any other information required by the
department.
     (3) Notwithstanding subsection (1) of this
section, a tax credit may not be transferred under this section:
     (a) From an agricultural producer to a
biomass collector claiming a credit for collecting the biomass; or
     (b) From a biomass collector to an
agricultural producer claiming a credit for producing the biomass. [2007 c.739 §3]
     Note: See note under 315.141.
     315.148 [1993 c.730 §14 (enacted in lieu of 316.098,
317.150 and 318.102); 1995 c.54 §4; repealed by 1999 c.21 §38]
     315.154
Definitions for crop donation credit. As used in this section and ORS 315.156:
     (1) “Apparently wholesome food” means:
     (a) Food fit for human consumption; and
     (b) Food that meets all quality and
labeling standards imposed by federal, state or local laws, even though the
food may not be readily marketable due to appearance, age, freshness, grade,
size, surplus or other condition.
     (2) “Crop” means an agricultural crop
producing food for human consumption and includes, but is not limited to,
bedding plants that produce food, orchard stock intended for the production of
food and livestock that may be processed into food for human consumption.
     (3) “Food bank or other charitable
organization” means any organization located in this state, including but not
limited to a gleaning cooperative, that is exempt from federal income taxes
under section 501(c)(3) of the Internal Revenue Code and that has as a
principal or ongoing purpose the distribution of food to children or homeless,
unemployed, elderly or low-income individuals.
     (4) “Grower” includes a person who raises
livestock.
     (5) “Qualified donation” means the harvest
or post-harvest contribution in Oregon of a crop or a portion of a crop grown
primarily to be sold for cash that is donated by the grower of the crop to a
gleaning cooperative, food bank or other charitable organization engaged in the
distribution of food without charge, at such a time that the crop is still
usable as food for human consumption and:
     (a) The grower of the crop has supplied
any crop contract quota with the wholesale or retail buyer;
     (b) If the grower of the crop is a party
to a contingent supply contract, the wholesale or retail buyer reduces the crop
quota that was reasonably anticipated to be supplied by the grower; or
     (c) The grower of the crop otherwise
determines to make a donation of apparently wholesome food.
     (6) “Wholesale market price” means the
market price for the produce determined either by:
     (a) The amount paid to the grower by the
last previous cash buyer of the particular crop; or
     (b) In the event there is no previous cash
buyer, a market price based upon the market price of the nearest regional
wholesale buyer or the regional u-pick market price. [1993 c.730 §16 (enacted
in lieu of 316.089); 1999 c.21 §39; 2001 c.222 §1]
     315.155 [Repealed by 1965 c.26 §6]
     315.156
Crop donation; forms. (1) A
taxpaying individual or corporation that is a grower of a crop and that makes a
qualified donation of the crop shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, as follows:
     (a) In the case of a qualified donation
made under circumstances described in ORS 315.154 (5)(a) or (b), the amount of
the credit shall be 10 percent of the value of the quantity of the crop donated
computed at the wholesale market price.
     (b) In the case of a qualified donation
made under circumstances described in ORS 315.154 (5)(c), the amount of the
credit shall be 10 percent of the value of the quantity of the crop donated
computed at the wholesale market price that the grower would have received had
the quantity of the crop donated been sold or salable.
     (2) At the time of donation, the director,
supervisor or other appropriate official of the entity to which a qualified
donation is made shall supply to the grower of the crop donated two copies of a
form prescribed by the Department of Revenue. The forms shall contain:
     (a) The name and address of the grower;
     (b) The description and quantity of the
donated crop;
     (c) The signature of the director,
supervisor or other appropriate official of the entity receiving the donated crop
verifying that the produce was or will be distributed to children or homeless,
unemployed, elderly or low-income individuals;
     (d) The wholesale market price; and
     (e) Other information required by the
Department of Revenue by rule.
     (3) Tax claim for tax credit shall be
substantiated by submission with the tax return, of the form described in
subsection (2) of this section, a statement verified by the taxpayer that the
qualified donation was made under circumstances described in ORS 315.154 (5)
and a copy of an invoice or other statement identifying the price received by
the grower for the crops of comparable grade or quality if there is a previous
cash buyer. The requirement for substantiation may be waived partially,
conditionally or absolutely, as provided under ORS 315.063.
     (4) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter.
     (5)(a) A nonresident individual shall be
allowed the credit computed under this section in the same manner and subject
to the same limitations as the credit allowed a resident by this section. However,
the credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the department terminates
the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS 314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117. [1993 c.730 §18 (enacted in lieu of 316.091, 317.148 and
318.104); 1995 c.54 §5; 1999 c.21 §40; 2001 c.222 §2]
     315.160 [Repealed by 1965 c.26 §6]
     315.163
Definitions for ORS 315.163 to 315.172. As used in ORS 315.163 to 315.172:
     (1) “Acquisition costs” means the cost of
acquiring buildings, structures and improvements that constitute or will
constitute farmworker housing. “Acquisition costs” does not include the cost of
acquiring land on which farmworker housing is or will be located.
     (2) “Condition of habitability” means a
condition that is in compliance with:
     (a) The applicable provisions of the state
building code under ORS chapter 455 and the rules adopted thereunder; or
     (b) If determined on or before December
31, 1995, sections 12 and 13, chapter 964, Oregon Laws 1989.
     (3) “Contributor” means a person that
acquired, constructed, manufactured or installed farmworker housing or
contributed money to finance a farmworker housing project.
     (4) “Eligible costs” includes acquisition
costs, finance costs, construction costs, excavation costs, installation costs
and permit costs and excludes land costs.
     (5) “Farmworker” means any person who, for
an agreed remuneration or rate of pay, performs temporary or permanent labor
for another in the production of farm products or in the planting, cultivating
or harvesting of seasonal agricultural crops or in the forestation or
reforestation of lands, including but not limited to the planting,
transplanting, tubing, precommercial thinning and thinning of trees and
seedlings, the clearing, piling and disposal of brush and slash and other
related activities.
     (6) “Farmworker housing” means housing:
     (a) Limited to occupancy by farmworkers
and their immediate families; and
     (b) No dwelling unit of which is occupied
by a relative of the owner or operator of the farmworker housing.
     (7) “Farmworker housing project” means the
acquisition, construction, installation or rehabilitation of farmworker
housing.
     (8) “Owner” means a person that owns
farmworker housing. “Owner” does not include a person that only has an interest
in the housing as a holder of a security interest.
     (9) “Rehabilitation” means to make repairs
or improvements to a building that improve its livability and are consistent
with applicable building codes.
     (10) “Relative” means a brother or sister
(whether by the whole or by half blood), spouse, ancestor (whether by law or by
blood), or lineal descendant of an individual.
     (11) “Taxpayer” includes a nonprofit corporation
or other person not subject to tax under ORS chapter 316, 317 or 318. [2003
c.588 §1]
     315.164
Farmworker housing projects; rules. (1) A taxpayer who is the owner or operator of farmworker housing is
allowed a credit against the taxes otherwise due under ORS chapter 316, if the
taxpayer is a resident individual, or against the taxes otherwise due under ORS
chapter 317, if the taxpayer is a corporation. The total amount of the credit
shall be equal to 50 percent of the eligible costs actually paid or incurred by
the taxpayer to complete a farmworker housing project, to the extent the
eligible costs actually paid or incurred by the taxpayer do not exceed the
estimate of eligible costs approved by the Housing and Community Services
Department under ORS 315.167.
     (2) A taxpayer who is otherwise eligible
to claim a credit under this section may elect to transfer all or a portion of
the credit to a contributor in the manner provided in ORS 315.169.
     (3)(a) The credit allowed under this
section may be taken for the tax year in which the farmworker housing project
is completed or in any of the nine tax years succeeding the tax year in which
the project is completed.
     (b) The credit allowed in any one tax year
may not exceed 20 percent of the amount determined under subsection (1) of this
section.
     (4)(a) To claim a credit under this
section, a taxpayer must show in each year following the completion of a
farmworker housing project that the housing continues to be operated as
farmworker housing.
     (b) A taxpayer need not make the showing
required in paragraph (a) of this subsection if the Housing and Community
Services Department waives the requirement after the taxpayer has successfully
met the requirement for the first five years after completion of the housing
project.
     (c) The Housing and Community Services
Department shall determine by rule the factors necessary to grant a waiver.
Such factors may include a documented decline in a particular area for
farmworker housing.
     (5) The credit shall apply only to a
farmworker housing project that is located within this state and physically
begun on or after January 1, 1990.
     (6)(a) A credit may not be allowed under
this section unless the taxpayer claiming credit under this section:
     (A) Obtains a letter of credit approval
from the Housing and Community Services Department pursuant to ORS 315.167; and
     (B) Files with the Department of Revenue
an annual certification providing that all occupied units for which credit is
being claimed are occupied by farmworkers and their immediate families.
     (b) The certification described under this
subsection shall be made on the form and in the time and manner prescribed by
the Department of Revenue.
     (7) Except as provided under subsection
(8) of this section, the credit allowed in any one year may not exceed the tax
liability of the taxpayer.
     (8) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, and any
credit not used in that fifth succeeding tax year may be carried forward and
used in the sixth succeeding tax year, and any credit not used in that sixth
succeeding tax year may be carried forward and used in the seventh succeeding
tax year, and any credit not used in that seventh succeeding tax year may be
carried forward and used in the eighth succeeding tax year, and any credit not
used in that eighth succeeding tax year may be carried forward and used in the
ninth succeeding tax year, but may not be carried forward for any tax year
thereafter.
     (9)(a) The credit provided by this section
is not in lieu of any depreciation or amortization deduction for the project to
which the taxpayer otherwise may be entitled under ORS chapter 316 or 317 for
the year.
     (b) The taxpayer’s adjusted basis for
determining gain or loss may not be further decreased by any tax credits
allowed under this section.
     (10) For a taxpayer to receive a credit
under this section, the farmworker housing must:
     (a) Comply with all occupational safety or
health laws, rules, regulations and standards;
     (b) If registration is required, be
registered as a farmworker camp with the Department of Consumer and Business
Services under ORS 658.750;
     (c) Upon occupancy and if an indorsement
is required, be operated by a person who holds a valid indorsement as a
farmworker camp operator under ORS 658.730; and
     (d) Continue to be operated as farmworker
housing for a period of at least 10 years after the completion of the
farmworker housing project, unless a waiver has been granted under subsection
(4) of this section.
     (11)(a) Pursuant to the procedures for a
contested case under ORS chapter 183, the Department of Revenue may order the
disallowance of the credit allowed under this section if it finds, by order,
that:
     (A) The credit was obtained by fraud or
misrepresentation; or
     (B) In the event that an owner or operator
claims or claimed the credit:
     (i) The taxpayer has failed to continue to
substantially comply with the occupational safety or health laws, rules,
regulations or standards;
     (ii) After occupancy and if registration
is required, the farmworker housing is not registered as a farmworker camp with
the Department of Consumer and Business Services under ORS 658.750;
     (iii) After occupancy and if an
indorsement is required, the farmworker housing is not operated by a person who
holds a valid indorsement as a farmworker camp operator under ORS 658.730; or
     (iv) The taxpayer has failed to make a
showing that the housing continues to be operated as farmworker housing as
required under subsection (4)(a) of this section and the taxpayer has not been
granted a waiver by the Housing and Community Services Department under
subsection (4)(b) of this section.
     (b) If the tax credit is disallowed
pursuant to this subsection, notwithstanding ORS 314.410 or other law, all
prior tax relief provided to the taxpayer shall be forfeited and the Department
of Revenue shall proceed to collect those taxes not paid by the taxpayer as a
result of the prior granting of the credit.
     (c) If the tax credit is disallowed
pursuant to this subsection, the taxpayer shall be denied any further credit
provided under this section, in connection with the farmworker housing project,
as the case may be, from and after the date that the order of disallowance
becomes final.
     (12) In the event that the farmworker
housing is destroyed by fire, flood, natural disaster or act of God before all
of the credit has been used, the taxpayer may nevertheless claim the credit as
if no destruction had taken place. In the event of fire, if the fire chief of
the fire protection district or unit determines that the fire was caused by
arson, as defined in ORS 164.315 and 164.325, by the taxpayer or by another at
the taxpayerÂ’s direction, then the fire chief shall notify the Department of
Revenue. Upon conviction of arson, the Department of Revenue shall disallow the
credit in accordance with subsection (11) of this section.
     (13)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (14) The Department of Revenue may adopt
rules for carrying out the provisions of this section. [1993 c.730 §20 (enacted
in lieu of 316.154 and 317.146); 1993 c.730 §20a; 1995 c.500 §10; 1995 c.746 §52;
2001 c.613 §13a; 2001 c.625 §2; 2001 c.868 §1; 2003 c.588 §§3,5]
     315.165 [Repealed by 1965 c.26 §6]
     315.167
Farmworker housing credit application; procedure; limitation; rules. (1)(a) Prior to six months after beginning a
farmworker housing project:
     (A) For which credit under ORS 315.164
will be claimed, an owner or operator of farmworker housing shall apply to the
Housing and Community Services Department for a letter of credit approval.
     (B) For which credit under ORS 315.169
will be claimed, a contributor shall apply to the Housing and Community
Services Department for a letter of credit approval.
     (b) If a portion of credit for a
farmworker housing project is to be claimed by the owner or operator of
farmworker housing under ORS 315.164 and the remainder is to be claimed by a
contributor under ORS 315.169, the application described in this section shall
be filed jointly by the owner or operator of farmworker housing and the
contributor.
     (2) The application shall be on such form
as is prescribed by the Housing and Community Services Department and shall
provide:
     (a) The name, address and taxpayer
identification number of the taxpayer;
     (b) The location of the proposed
farmworker housing;
     (c) A description of the project
identifying the type of housing that is the subject of the project;
     (d) An estimate of the eligible costs of
the project; and
     (e) Any other information as the Housing
and Community Services Department may require.
     (3) The Housing and Community Services
Department may review applications using any reasonable system of prioritizing
review established by department rule.
     (4) Applications filed in compliance with
this section shall be approved by the Housing and Community Services Department
to the extent that the total of estimated eligible costs for all approved
projects for the calendar year is equal to or less than $7.25 million. No
application shall be approved if the addition of the estimated eligible costs
of the project to the estimated eligible costs for all approved projects for
the calendar year would exceed $7.25 million.
     (5) Upon approval of an application, the
Housing and Community Services Department shall prepare a letter of credit
approval. The letter shall state the approved amount of estimated eligible
costs for the project and, if applicable, the portion of credit to be claimed
by an owner or operator of farmworker housing under ORS 315.164 and the portion
of credit to be claimed by a contributor under ORS 315.169. The letter shall be
sent:
     (a) To the owner or operator of farmworker
housing, if any credit is to be claimed under ORS 315.164; and
     (b) To the contributor, if any credit is
to be claimed under ORS 315.169.
     (6) At the conclusion of each calendar
year, the Housing and Community Services Department shall send a list of the
names, addresses and taxpayer identification numbers of taxpayers to whom a
letter of credit approval has been issued under this section during the
calendar year, along with approved amounts of estimated eligible costs for each
project, to the Department of Revenue.
     (7) Notwithstanding that a letter of
credit approval has been issued to a taxpayer under this section, the
Department of Revenue may disallow, in whole or in part, a claim for credit
under ORS 315.164 upon the Department of RevenueÂ’s determination that under the
provisions of ORS 315.164 the taxpayer is not entitled to the credit or is only
entitled to a portion of the amount claimed. [1995 c.746 §52a; 2001 c.613 §14;
2001 c.625 §3; 2001 c.868 §5; 2003 c.588 §§6a,7]
     315.169
Farmworker housing contributor credit; transfer of farmworker housing owner or
operator credit; continued eligibility; rules. (1) A taxpayer that is a contributor is
allowed a credit against the taxes otherwise due under ORS chapter 316, if the
taxpayer is a resident individual, or ORS chapter 317, if the taxpayer is a
corporation, to the extent the owner or operator of farmworker housing
transferred all or a portion of the credit allowed to the owner or operator
under ORS 315.164.
     (2) An owner or operator of farmworker
housing may transfer all or a portion of the credit allowed to the owner or
operator under ORS 315.164 to one or more contributors but the amount
transferred may not total more than the total credit the owner or operator may
claim.
     (3) To receive a credit under this
section:
     (a) The contributor must obtain a letter
of credit approval from the Housing and Community Services Department under ORS
315.167; or
     (b) If the owner or operator of farmworker
housing elects to transfer all or a portion of the credit allowed under ORS
315.164 after the date that a letter of credit approval has been issued to the
owner or operator, the owner or operator and the contributor must jointly file
a statement with the Department of Revenue stating the portion of the credit
the contributor is allowed to claim and any other information the department
may require by rule.
     (4) A contributor remains eligible to
receive a credit under this section even if the owner or operator of the
farmworker housing becomes ineligible for the credit as a result of:
     (a) Failure to file the annual
certification under ORS 315.164 (6);
     (b) Failure to continue to substantially
comply with occupational safety or health laws, rules, regulations or standards
under ORS 315.164 (10);
     (c) Failure to register as a farmworker
camp with the Department of Consumer and Business Services under ORS 658.750;
     (d) Failure of the operator to hold a
valid indorsement as a farmworker camp operator under ORS 658.730; or
     (e) Failure to comply with any other rules
or provisions relating to the operation or maintenance of the farmworker
housing after the contributor has completed work on the project.
     (5)(a) A contributor does not remain
eligible to receive a credit under this section if the Department of Revenue
finds, by order of a disallowance of credit and pursuant to the procedures for
a contested case under ORS chapter 183, that the contributor obtained the
credit by fraud or misrepresentation, including a finding that the housing did
not comply with all occupational safety or health laws, rules, regulations and
standards applicable for farmworker housing at the time the housing was
completed.
     (b) If the credit is disallowed pursuant
to this subsection, notwithstanding ORS 314.410 or other law, all prior tax
relief provided to the taxpayer shall be forfeited and the department shall
proceed to collect those taxes not paid by the taxpayer as a result of the
prior granting of the credit.
     (c) If the credit is disallowed pursuant
to this subsection, the taxpayer shall be denied any further credit provided
under this section, in connection with the farmworker housing project, as the
case may be, from and after the date that the order of disallowance becomes
final.
     (6)(a) The credit allowed under this
section may be taken for the tax year in which the farmworker housing project
is completed or in any of the nine tax years succeeding the tax year in which
the project is completed.
     (b) The credit allowed in any one tax year
may not exceed 20 percent of the amount determined under subsection (2) of this
section that was transferred to the contributor claiming the credit.
     (7) Except as provided under subsection
(8) of this section, the credit allowed in any one year may not exceed the tax
liability of the taxpayer.
     (8) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, and any
credit not used in that fifth succeeding tax year may be carried forward and
used in the sixth succeeding tax year, and any credit not used in that sixth
succeeding tax year may be carried forward and used in the seventh succeeding
tax year, and any credit not used in that seventh succeeding tax year may be
carried forward and used in the eighth succeeding tax year, and any credit not
used in that eighth succeeding tax year may be carried forward and used in the
ninth succeeding tax year, but may not be carried forward for any tax year
thereafter.
     (9)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the department terminates
the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS 314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (10) The department may adopt rules for
carrying out the provisions of this section. [2001 c.868 §3; 2003 c.588 §§9,11]
     315.170 [Repealed by 1965 c.26 §6]
     315.172
Collection of taxes upon disallowance of farmworker housing credit. Upon an order of the disallowance of a
credit for farmworker housing under ORS 315.164 (11) or 315.169 (5), the
Department of Revenue immediately shall collect any taxes due by reason of the
disallowance and shall have the benefit of all the laws of this state
pertaining to the collection of income and excise taxes. An assessment of the
taxes is not necessary and a statute of limitation shall not preclude the
collection of the taxes. [2001 c.868 §4; 2003 c.588 §15]
     315.175 [Repealed by 1965 c.26 §6]
     315.180 [Repealed by 1965 c.26 §6]
     315.185 [Repealed by 1965 c.26 §6]
     315.190 [Repealed by 1965 c.26 §6]
     315.195 [Repealed by 1965 c.26 §6]
     315.200 [Repealed by 1965 c.26 §6]
CHILDREN AND
FAMILIES; POVERTY RELIEF
     315.204
Dependent care assistance; rules. (1) A credit against the taxes otherwise due under ORS chapter 316
(or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be
allowed to a resident employer or to a corporation that is an employer for
amounts paid or incurred during the taxable year by the employer for dependent
care assistance actually provided to an employee if the assistance is furnished
pursuant to a program which meets the requirements of section 129(d) of the
Internal Revenue Code and if the employer has received a certificate as
provided in subsection (2) of this section.
     (2)(a) Each employer that elects to
receive a credit allowed under subsection (1) of this section must submit an
application to the Child Care Division of the Employment Department each year
the employer wishes to receive the credit. The Child Care Division shall
prescribe by rule the form of the application and the information required to
be given on the application.
     (b) The Child Care Division shall issue a
certificate to each employer that submits an application under this subsection.
     (3) The amount of the credit allowed under
subsection (1) of this section shall be 50 percent of the amount so paid or
incurred by the employer during the taxable year but shall not exceed $2,500 of
dependent care assistance actually provided to the employee.
     (4)(a) A credit against the taxes
otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation,
under ORS chapter 317 or 318) shall be allowed to a resident employer, or to a
corporation that is an employer, based upon amounts paid or incurred by the
employer during the taxable year to provide information and referral services to
assist employees of the employer employed within this state to obtain dependent
care.
     (b) The amount of the credit allowed under
this subsection shall be 50 percent of the amounts paid or incurred during the
taxable year.
     (5) No amount paid or incurred during the
taxable year of an employer in providing dependent care assistance to any
employee shall qualify for the credit allowed under subsection (1) of this
section if the amount was paid or incurred to an individual described in
section 129(c)(1) or (2) of the Internal Revenue Code.
     (6) No amount paid or incurred by an
employer to provide dependent care assistance to an employee shall qualify for
the credit allowed under subsection (1) of this section if the amount paid or
incurred is paid or incurred pursuant to a salary reduction plan or is not paid
or incurred for services performed within this state.
     (7) If the credit allowed under subsection
(1) or (4) of this section is claimed, the amount of any deduction allowed or
allowable under ORS chapter 316, 317 or 318 for the amount that qualifies for
the credit (or upon which the credit is based) shall be reduced by the dollar
amount of the credit allowed. The election to claim a credit allowed under this
section shall be made at the time of filing the tax return in accordance with
any rules adopted by the Department of Revenue.
     (8) The amount upon which the credit
allowed under subsection (1) of this section is based shall not be included in
the gross income of the employee to whom the dependent care assistance is
provided. However, the amount excluded from the income of an employee under
this section shall not exceed the limitations provided in section 129(b) of the
Internal Revenue Code. For purposes of ORS 316.162, with respect to an employee
to whom dependent care assistance is provided, “wages” does not include any
amount excluded under this subsection. Amounts excluded under this subsection
shall not qualify as expenses for which a credit is allowed to the employee
under ORS 316.078.
     (9) A nonresident shall be allowed the
credit allowed under subsection (1) or (4) of this section. The credit shall be
computed in the same manner and be subject to the same limitations as the
credit granted to a resident.
     (10) If a change in the taxable year of
the taxpayer occurs as described in ORS 314.085, or if the department
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (11) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (12) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (13) For purposes of the credit allowed
under subsection (1) or (4) of this section:
     (a) The definitions and special rules
contained in section 129(e) of the Internal Revenue Code shall apply to the
extent applicable.
     (b) “Employer” means an employer carrying
on a business, trade, occupation or profession in this state.
     (14) In the case of an on-site facility,
in accordance with any rules adopted by the department, the amount upon which
the credit allowed under subsection (1) of this section is based, with respect
to any dependent, shall be based upon utilization and the value of the services
provided. [1993 c.730 §22 (enacted in lieu of 316.134, 317.135 and 318.175);
1995 c.79 §163; 1997 c.839 §65; 2001 c.674 §14]
     Note: Section 10, chapter 682, Oregon Laws 1987,
provides:
     Sec.
10. ORS 315.204 applies to
tax years beginning on or after January 1, 1988, and before January 1, 2017.
[1987 c.682 §10; 1991 c.929 §3; 2001 c.674 §1; 2005 c.485 §1]
     315.205 [Repealed by 1965 c.26 §6]
     315.208
Dependent care facilities.
(1) A credit against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) is
allowed to an employer, based upon costs actually paid or incurred by the
employer, to acquire, construct, reconstruct, renovate or otherwise improve
real property so that the property may be used primarily as a dependent care
facility.
     (2) The credit allowed under this section
shall be the lesser of:
     (a) $2,500, multiplied by the number of
full-time equivalent employees employed by the employer (on the property or
within such proximity to the property that any dependents of the employees may
be cared for in the facility) on any date within the two years immediately
preceding the end of the first tax year for which credit is first claimed; or
     (b) Fifty percent of the cost of the
acquisition, construction, reconstruction, renovation or other improvement; or
     (c) $100,000.
     (3) To qualify for the credit allowed
under subsection (1) of this section:
     (a) The amounts paid or incurred by the
employer for the acquisition, construction, reconstruction, renovation or other
improvement to real property may be paid or incurred either:
     (A) To another to be used to acquire,
construct, reconstruct, renovate or otherwise improve real property to the end
that it may be used as a dependent care facility with which the employer
contracts to make dependent care assistance payments which payments are wholly
or partially entitled to exclusion from income of the employee for federal tax
purposes under section 129 of the Internal Revenue Code; or
     (B) To acquire, construct, reconstruct,
renovate or otherwise improve real property to the end that it may be operated
by the employer, or a combination of employers, to provide dependent care
assistance to the employees of the employer under a program or programs under
which the assistance is, under section 129 of the Internal Revenue Code, wholly
or partially excluded from the income of the employee.
     (b) The property must be in actual use as
a dependent care facility on the last day of the tax year for which credit is
claimed and dependent care services assisted by the employer must take place on
the acquired, constructed, reconstructed, renovated or improved property and
must be entitled to an exclusion (whole or partial) from the income of the
employee for federal tax purposes under section 129 of the Internal Revenue
Code on the last day of the tax year for which credit is claimed.
     (c) The person or persons operating the
dependent care facility on the property acquired, constructed, reconstructed,
renovated or improved must hold a certification (temporary or not) issued under
ORS 657A.030 and 657A.250 to 657A.450 by the Child Care Division to operate the
facility on the property on the last day of the tax year of any tax year in
which credit under this section is claimed.
     (d) The dependent care facility acquired,
constructed, reconstructed, renovated or otherwise improved must be located in
     (e) The employer must meet any other
requirements or furnish any information, including information furnished by the
employees or person operating the dependent care facility, to the Department of
Revenue that the department requires under its rules to carry out the purposes
of this section.
     (f) The dependent care facility, the costs
of the acquisition, construction, reconstruction, renovation or improvement
upon which the credit granted under this section is based, must be placed in
operation before January 1, 2002.
     (4) The total amount of the costs upon
which the credit allowable under this section is based, and the total amount of
the credit, shall be determined by the employer, subject to any rules adopted
by the department, during the tax year in which the property acquired,
constructed, reconstructed, renovated or otherwise improved is first placed in
operation as a dependent care facility certified by the Child Care Division
under ORS 657A.030 and 657A.250 to 657A.450. One-tenth of the total credit is
allowable in that tax year and one-tenth of the total credit is allowable in
each succeeding tax year, not to exceed nine tax years, thereafter. No credit
shall be allowed under this section for any tax year at the end of which the
dependent care facility is not in actual operation under a current
certification (temporary or not) issued by the Child Care Division nor shall
any credit be allowed for any tax year at the end of which the employer is not
providing dependent care assistance entitled to exclusion (whole or partial)
from employee income for federal tax purposes under section 129 of the Internal
Revenue Code for dependent care on the property. Any tax credit allowable under
this section in a tax year may be carried forward in the same manner and to the
same tax years as if it were a tax credit described in ORS 315.204.
     (5) Nothing in this section shall affect
the computation of depreciation or basis of a dependent care facility. If a
deduction is allowed for purposes of ORS chapter 316, 317 or 318 for the
amounts paid or incurred upon which the credit under this section is based, the
deduction shall be reduced by the dollar amount of the credit granted under
this section.
     (6) For purposes of the credit allowed
under this section:
     (a) The definitions and special rules
contained in section 129(e) of the Internal Revenue Code shall apply to the
extent applicable.
     (b) “Employer” means a resident, part-year
resident or full-year nonresident employer carrying on a business, trade,
occupation or profession in this state.
     (7) The department shall require that
evidence that the person operating the dependent care facility on the date that
the taxpayerÂ’s tax year ends holds a current certification (temporary or
otherwise) to operate the facility accompany the tax return on which any amount
of tax credit granted under this section is claimed, or that such evidence be
separately furnished. If the evidence is not so furnished, no credit shall be
allowed for the tax year for which the evidence is not furnished. The Child
Care Division shall cooperate by making such evidence, in an appropriate form,
available to the person operating the facility, if the person is currently
certified (temporary or not) so that, if necessary, it may be made available to
the taxpayer. [1993 c.730 §24 (enacted in lieu of 316.132, 317.114 and
318.160); 1997 c.325 §37; 1997 c.839 §66; 1999 c.743 §21]
     315.210 [Repealed by 1965 c.26 §6]
     315.213
Child Care Division contributions. (1) A credit against the taxes otherwise due under ORS chapter 316 or,
if the taxpayer is a corporation, under ORS chapter 317 or 318 is allowed to a
taxpayer for certified contributions made to the Child Care Division under ORS
657A.706.
     (2) The amount of a tax credit available
to a taxpayer for a tax year under this section shall equal the amount stated
in the tax credit certificate received under ORS 657A.706.
     (3) The credit allowed under this section
may not exceed the tax liability of the taxpayer for the tax year in which the
credit is claimed.
     (4) If the amount claimed as a credit
under this section is allowed as a deduction for federal tax purposes, the
amount allowed as a credit under this section shall be added to federal taxable
income for
     (5) A credit under this section may be
claimed by a nonresident or part-year resident without proration.
     (6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
     (7) The definitions in ORS 657A.700 apply
to this section. [2001 c.674 §10; 2003 c.473 §8]
     Note: Section 13, chapter 674, Oregon Laws 2001,
provides:
     Sec.
13. ORS 315.213 applies to
tax years beginning on or after January 1, 2002, and before January 1, 2013.
[2001 c.674 §13; 2003 c.473 §9; 2007 c.880 §1]
     315.215 [Repealed by 1965 c.26 §6]
     315.234 [1993 c.730 §26 (enacted in lieu of 316.133
and 317.134); 1995 c.54 §6; 1995 c.746 §49; repealed by 2005 c.94 §81]
     315.237
Employee and dependent scholarship program payments. (1) As used in this section, “qualified
scholarship” means a scholarship that meets the criteria set forth or
incorporated into the letter of employee and dependent scholarship program
certification issued by the Oregon Student Assistance Commission under ORS
348.618.
     (2) A credit against the taxes otherwise
due under ORS chapter 316 is allowed to a resident employer (or, if the
taxpayer is a corporation that is an employer, under ORS chapter 317 or 318)
that has received:
     (a) Program certification from the Oregon
Student Assistance Commission under ORS 348.618; and
     (b) Tax credit certification under ORS
348.621 for the calendar year in which the tax year of the taxpayer begins.
     (3) The amount of the credit allowed to a
taxpayer under this section shall equal 50 percent of the amount of qualified
scholarship funds actually paid to or on behalf of qualified scholarship
recipients during the tax year.
     (4) The credit allowed under this section
may not exceed the tax liability of the taxpayer for the tax year.
     (5) The credit allowed to a taxpayer for a
tax year under this section may not exceed $50,000.
     (6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (7) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (8) The credit shall be claimed on the
form and in the time and manner in which the department shall prescribe. If the
taxpayer is required to do so by the department, the taxpayer shall file a copy
of the letter of tax credit certification issued by the commission with the
taxpayerÂ’s return for the tax year in which a credit under this section is
claimed. [2001 c.475 §8]
     315.254
Youth apprenticeship sponsorship. (1) A business tax credit against the taxes otherwise due under ORS
chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or
318) shall be allowed to an eligible taxpayer who sponsors eligible students
who began participation in the youth apprenticeship program established under
ORS 344.745 and 344.750 prior to November 4, 1993. The amount of the credit
shall be the wages paid to participating students by the sponsoring employer
taxpayer during the tax year, excluding wages paid after the first year of
participation, and in an amount not to exceed $2,500 in any one tax year.
     (2)(a) A nonresident employer shall be
allowed the credit provided under this section computed in the same manner and
subject to the same limitations as the credit allowed to a resident of this
state. However, the credit shall be prorated using the proportion provided in
ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (3) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, but may
not be carried forward for any tax year thereafter.
     (4)(a) The credit allowed under this
section is in addition to any deduction otherwise allowable under ORS chapter
316, 317 or 318.
     (b) No other credit allowed under this
chapter or ORS chapter 316, 317 or 318 shall be based upon all or any portion
of amounts upon which the credit allowed under this section is based. [1993
c.730 §28 (enacted in lieu of 316.151, 317.141 and 318.085)]
     315.255 [Repealed by 1965 c.26 §6]
     315.259
First Break Program; rules.
(1) The tax credits provided under this section may be referred to as the First
Break Program.
     (2) As used in this section:
     (a) “Certificate” means a certificate
issued by a community-based organization under subsection (5) of this section
that certifies an individual as a qualified youth.
     (b) “Community-based organization” means
an organization designated by the Employment Department by rule as an
organization authorized to certify individuals as qualified youths for purposes
of this section, including all local commissions on children and families,
schools or class groups offering alternative education programs under ORS
336.615 to 336.375, the federal Job Corps, school districts and the Youth
Employment and Empowerment Coalition.
     (c) “Employer” means an employer subject
to taxation under ORS chapter 316, 317 or 318.
     (d) “Hiring date” means the date on which
the individual begins work for the first employer after becoming a qualified
youth.
     (e) “Qualified youth” or “qualified youth
employee” means an individual who is 14 to 23 years of age on the hiring date
and who has received a certificate pursuant to subsection (5) of this section
from a community-based organization identifying the youth as eligible to
participate in the First Break Program according to rules adopted by the
Employment Department.
     (f) “Sustained employment” means
employment:
     (A)(i) Of at least six months during the
12-month period following the hiring date; and
     (ii) By three or fewer employers during
the 12-month period following the hiring date; or
     (B) Of a full-time student for at least
two months during the period between May 1 and September 15.
     (3)(a) A credit against the taxes
otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation that
is an employer, under ORS chapter 317 or 318) is allowed to a resident
employer, based upon wages actually paid by the employer to a qualified youth
employee.
     (b) The credit allowed under this
subsection shall be allowed for the tax year in which ends the 12-month period
following the hiring date of the qualified youth employee. Nothing in this
paragraph shall be interpreted to require the employer to employ the qualified
youth for the entire 12-month period in order to be eligible for the credit
under this subsection.
     (4) The amount of the credit provided
under subsection (3) of this section shall be equal to the lesser of:
     (a) $1,000;
     (b) The amount of credit provided for in
paragraph (a) of this subsection that has not already been taken into account
by a previous employer of the qualified youth employee; or
     (c) 50 percent of the wages paid to the
qualified youth employee during the 12-month period following the qualified
youth employeeÂ’s hiring date.
     (5)(a) The Employment Department shall
authorize each community-based organization to issue only a fixed number of
certificates, the amount to be determined by the Employment Department, but not
to exceed 1,500 certificates.
     (b) Each certificate is valid only for a
two-year period from the date it is issued to a qualified youth by a
community-based organization.
     (c) A community-based organization shall
track the use of each certificate issued by it to a qualified youth and, if the
youth is employed by more than one employer during the time the certificate is
issued, shall calculate the amount of maximum credit allowable under subsection
(4) of this section and shall inform each subsequent employer of the maximum
amount of credit under this section to which the employer may be entitled.
     (d) If the community-based organization
determines that the qualified youth is unable or unwilling to find or maintain
sustained employment, the community-based organization shall cancel the
certificate and inform the Employment Department of the cancellation. Upon
cancellation of a certificate, the Employment Department may authorize any
community-based organization to issue a new certificate to a qualified youth,
provided that the total number of outstanding certificates and unissued
certificates authorized to be issued does not exceed 1,500.
     (e) If the community-based organization
determines that all of the employers of a qualified youth are collectively
entitled to 80 percent or more of the tax credit provided under this section at
the time the qualified youth becomes unemployed, the community-based
organization shall withdraw the certificate, and any subsequent employer shall
not be entitled to a credit under this section for employment of the qualified
youth. A certificate that is withdrawn under this paragraph shall not be reissued.
     (f) No certificate may be issued under
this subsection on or after January 1, 2005.
     (6) Wages taken into account for purposes
of subsection (4) of this section shall not include any amount paid by the
employer to an individual for whom the employer receives federal funds for
on-the-job training of the individual.
     (7) Only one employer at a time shall be
eligible for the credit provided under this section for the employment of a
qualified youth employee.
     (8)(a) A nonresident shall be allowed the
credit provided under subsection (3) of this section computed in the same
manner and subject to the same limitations as the credit allowed to a resident
of this state. However, the credit shall be prorated using the proportion
provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
subsection (3) of this section shall be prorated or computed in a manner
consistent with ORS 314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by subsection (3) of this section shall be determined in a
manner consistent with ORS 316.117.
     (9) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (10)(a) The credit allowed under
subsection (3) of this section is in addition to any deduction otherwise
allowable under ORS chapter 316, 317 or 318.
     (b) No other credit allowed under this
chapter or ORS chapter 316, 317 or 318 shall be based upon all or any portion
of amounts upon which the credit allowed under subsection (3) of this section
is based.
     (11) An employer receiving a credit under
subsection (3) of this section shall maintain records for each qualified youth
employee establishing that the employee was certified by a community-based
organization as a qualified youth on or before the hiring date. The records
shall be retained for a period of four years after the tax year in which a
credit provided under subsection (3) of this section is taken.
     (12) The Employment Department shall adopt
rules that:
     (a) Provide the criteria by which a youth
may be identified as eligible to participate in the First Break Program.
     (b) Designate community-based
organizations that may issue the certificates described in subsection (5) of
this section, including all local commissions on children and families, schools
and class groups offering alternative education programs, the federal Jobs
Corps, school districts and the Youth Employment and Empowerment Coalition. [1995
c.648 §2; 1997 c.325 §38; 1999 c.59 §78; 1999 c.741 §1]
     315.260 [Repealed by 1965 c.26 §6]
     315.262
Working family child care; rules. (1) As used in this section:
     (a) “Child care” means care provided to a
qualifying child of the taxpayer for the purpose of allowing the taxpayer to be
gainfully employed, to seek employment or to attend school on a full-time or
part-time basis, except that the term does not include care provided by:
     (A) The child’s parent or guardian, unless
the care is provided in a certified or registered child care facility; or
     (B) A person who has a relationship to the
taxpayer that is described in section 152(a) of the Internal Revenue Code who
has not yet attained 19 years of age at the close of the tax year.
     (b) “Child care expenses” means the costs
associated with providing child care to a qualifying child of a qualified
taxpayer.
     (c) “Disability” means a physical or
cognitive condition that results in a person requiring assistance with activities
of daily living.
     (d) “Earned income” has the meaning given
that term in section 32 of the Internal Revenue Code.
     (e) “Qualified taxpayer” means a taxpayer:
     (A) Who is an
     (B) With federal adjusted gross income for
the tax year that does not exceed 250 percent of the federal poverty level;
     (C) With
     (D) Who does not have more than the
maximum amount of disqualified income under section 32(i) of the Internal
Revenue Code that is allowed to a taxpayer entitled to the earned income tax
credit for federal tax purposes.
     (f) “Qualifying child” has the meaning
given that term in section 152 of the Internal Revenue Code except that it is
limited to an individual who is under 13 years of age, or who is a child with a
disability, as that term is defined in ORS 316.099.
     (2) A taxpayer is not disqualified from
claiming the credit under this section solely because the taxpayerÂ’s spouse has
a disability, if the disability is such that it prevents the taxpayerÂ’s spouse
from providing child care, being gainfully employed, seeking employment and
attending school. The Department of Revenue may require that a physician verify
the existence of the disability and its severity.
     (3) A qualified taxpayer shall be allowed
a credit against the taxes otherwise due under ORS chapter 316 equal to the
applicable percentage of the qualified taxpayerÂ’s child care expenses (rounded
to the nearest $50).
     (4) The applicable percentage to be used
in calculating the amount of the credit provided in this section shall be
determined in accordance with the following table:
______________________________________________________________________________
Applicable                  Greater
of
Percentage                  Adjusted
Gross Income or
                                  Federal Adjusted
                                  Gross Income, as Percent
                                  of Federal Poverty Level
     40                         200 or less
     36                         Greater than 200 and less than
                                       or
equal to 210
     32                         Greater than 210 and less than
                                       or
equal to 220
     24                         Greater than 220 and less than
                                       or
equal to 230
     16                         Greater than 230 and less than
                                       or
equal to 240
     8                           Greater than 240 and less than
                                       or
equal to 250
     0                           Greater than 250 percent
                                       of
federal poverty level
______________________________________________________________________________
     (5) The department may:
     (a) Adopt rules for carrying out the
provisions of this section; and
     (b) Prescribe the form used to claim a
credit and the information required on the form. The form may provide for
verification of an individualÂ’s disability by a physician, if applicable, as
described in subsection (2) of this section.
     (6) In the case of a credit allowed under
this section:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (d) In the case of a qualified taxpayer
who is married, a credit shall be allowed under this section only if:
     (A) The taxpayer files a joint return;
     (B) The taxpayer files a separate return
and is legally separated or subject to a separate maintenance agreement; or
     (C) The taxpayer files a separate return
and the taxpayer and the taxpayerÂ’s spouse reside in separate households on the
last day of the tax year with the intent of remaining in separate households in
the future.
     (7) If the amount allowable as a credit
under this section, when added to the sum of the amounts allowable as payment
of tax under ORS 316.187 (withholding), ORS 316.583 (estimated tax), other tax
prepayment amounts and other refundable credit amounts, exceeds the taxes
imposed by ORS chapters 314 and 316 for the tax year (reduced by any
nonrefundable credits allowable for purposes of ORS chapter 316 for the tax
year), the amount of the excess shall be refunded to the taxpayer as provided
in ORS 316.502.
     (8)(a) The minimum amount of earned income
a taxpayer must earn in order to be a qualified taxpayer shall be adjusted for
tax years beginning in each calendar year by multiplying $6,000 by the ratio of
the monthly averaged U.S. City Average Consumer Price Index for the 12
consecutive months ending August 31 of the prior calendar year over the monthly
averaged index for the second quarter of the calendar year 1998.
     (b) As used in this subsection, “U.S. City
Average Consumer Price Index” means the U.S. City Average Consumer Price Index
for All Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor.
     (c) If any adjustment determined under
paragraph (a) of this subsection is not a multiple of $50, the adjustment shall
be rounded to the nearest multiple of $50.
     (d) Notwithstanding paragraphs (a) to (c)
of this subsection, the adjusted minimum amount of earned income a taxpayer
must earn may not exceed the amount an individual would earn if the individual
worked 1,040 hours at the minimum wage established under ORS 653.025 and in
effect on January 1 of the calendar year in which begins the tax year of the
taxpayer, rounded to the next lower multiple of $50. [1997 c.692 §2; 1999 c.998
§1; 2001 c.114 §32; 2001 c.660 §10; 2001 c.867 §1; 2003 c.46 §33; 2003 c.473 §11;
2005 c.49 §1; 2005 c.832 §25; 2007 c.70 §83; 2007 c.868 §1]
     Note: Section 2, chapter 868, Oregon Laws 2007,
provides:
     Sec.
2. The amendments to ORS
315.262 by section 1 of this 2007 Act apply to tax years beginning on or after
January 1, 2007. [2007 c.868 §2]
     Note: 315.262 is repealed January 2, 2014. See
section 3, chapter 868, Oregon Laws 2007.
     315.265 [Repealed by 1965 c.26 §6]
     315.266
Earned income; rules. (1) In
addition to any other credit available for purposes of ORS chapter 316, an
eligible resident individual shall be allowed a credit against the tax
otherwise due under ORS chapter 316 for the tax year in an amount equal to six
percent of the earned income credit allowable to the individual for the same
tax year under section 32 of the Internal Revenue Code.
     (2) An eligible nonresident individual
shall be allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of this section.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (3) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (4) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (5) If the amount allowable as a credit
under this section, when added to the sum of the amounts allowable as payment
of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other
refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316
for the tax year after application of any nonrefundable credits allowable for
purposes of ORS chapter 316 for the tax year, the amount of the excess shall be
refunded to the taxpayer as provided in ORS 316.502.
     (6) The Department of Revenue may adopt
rules for purposes of this section, including but not limited to rules relating
to proof of eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
     (7) Refunds attributable to the earned
income credit allowed under this section shall not bear interest. [1997 c.692 §3;
2001 c.114 §33; 2001 c.660 §56; 2003 c.77 §12; 2005 c.832 §§54,57,59; 2007
c.880 §2]
     Note: The amendments to 315.266 by section 57,
chapter 832, Oregon Laws 2005, apply to tax years beginning on or after January
1, 2008. See section 58, chapter 832, Oregon Laws 2005. The text that applies
to tax years beginning before January 1, 2008, is set forth for the userÂ’s
convenience.
     315.266. (1) In addition to any other credit available
for purposes of ORS chapter 316, an eligible resident individual shall be
allowed a credit against the tax otherwise due under ORS chapter 316 for the
tax year in an amount equal to five percent of the earned income credit
allowable to the individual for the same tax year under section 32 of the
Internal Revenue Code.
     (2) An eligible nonresident individual
shall be allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of this section.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (3) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (4) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (5) If the amount allowable as a credit
under this section, when added to the sum of the amounts allowable as payment
of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other
refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and
316 for the tax year after application of any nonrefundable credits allowable
for purposes of ORS chapter 316 for the tax year, the amount of the excess shall
be refunded to the taxpayer as provided in ORS 316.502.
     (6) The Department of Revenue may adopt
rules for purposes of this section, including but not limited to rules relating
to proof of eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
     (7) Refunds attributable to the earned
income credit allowed under this section shall not bear interest.
     Note: 315.266 is repealed January 1, 2014, and the
repeal applies to tax years beginning on or after January 1, 2014. See sections
5 and 6, chapter 880, Oregon Laws 2007.
     315.270 [Repealed by 1965 c.26 §6]
     315.271
Individual development accounts. (1) A credit against taxes otherwise due under ORS chapter 316, 317 or
318 shall be allowed for donations to a fiduciary organization for distribution
to individual development accounts established under ORS 458.685. The credit
shall equal the lesser of $75,000 or 75 percent of the donation amount. To
qualify for a credit under this section, donations to a fiduciary organization
must be made prior to January 1, 2012.
     (2) If a credit allowed under this section
is claimed, the amount upon which the credit is based that is allowed or
allowable as a deduction from federal taxable income under section 170 of the
Internal Revenue Code shall be added to federal taxable income in determining
     (3) The allowable tax credit that may be
used in any one tax year shall not exceed the tax liability of the taxpayer.
     (4) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any tax credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year. Any tax
credit not used in the second succeeding tax year may be carried forward and
used in the third succeeding tax year, but may not be carried forward for any
tax year thereafter. [1999 c.1000 §12; 2001 c.648 §1; 2007 c.765 §1]
     Note: 315.271 is repealed January 2, 2016. See
section 9, chapter 765, Oregon Laws 2007.
     315.272
Certain individual development account withdrawals. (1) An individual taxpayer shall be allowed
a credit against the taxes that are otherwise due under ORS chapter 316 if,
during the tax year:
     (a) The taxpayer purchased a primary
residence;
     (b) All or a part of the usual and
reasonable settlement, financing or other closing costs for the purchase were
funded from a withdrawal from an individual development account in which the
taxpayer is the account holder; and
     (c) An approved purpose of the account is
the purpose described in ORS 458.685 (1)(d).
     (2) The amount of the tax credit shall be
the lesser of:
     (a) The amount of the withdrawal from the
individual development account that is for the purpose described in ORS 458.685
(1)(d);
     (b) The amount of usual and reasonable
settlement, financing and other closing costs incurred in the purchase of the
primary residence;
     (c) $2,000; or
     (d) The tax liability of the taxpayer.
     (3) A tax credit allowed under this
section that is unused may not be carried forward to a succeeding tax year.
     (4) A tax credit under this section may be
claimed by a nonresident or a part-year resident without proration.
     (5) The definitions in ORS 458.670 apply
to this section. [2005 c.575 §2]
     315.274
Qualified adoption expenses.
(1) For purposes of this section, “qualified adoption expenses” has the meaning
given that term in section 23 of the Internal Revenue Code.
     (2) A taxpayer shall be allowed a credit
against the taxes otherwise due under ORS chapter 316 in an amount determined
under subsection (3) of this section for qualified adoption expenses paid or
incurred by the taxpayer during the tax year.
     (3) The amount of the credit allowed under
this section shall be equal to the lesser of:
     (a) The qualified adoption expenses paid
or incurred by the taxpayer during the tax year less the credit allowed to the
taxpayer under section 23 of the Internal Revenue Code;
     (b) $1,500; or
     (c) The credit allowed to the taxpayer for
qualified adoption expenses under section 23 of the Internal Revenue Code.
     (4) In the case of a credit allowed under
this section:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (5) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, but may not be carried forward for any tax year
thereafter. [1999 c.1088 §2; 2001 c.660 §57; 2003 c.77 §13]
     Note: Section 3, chapter 1088, Oregon Laws 1999,
provides:
     Sec.
3. Section 2 of this 1999
Act [315.274] applies to tax years beginning on or after January 1, 2000, and
before January 1, 2006. [1999 c.1088 §3]
     315.275 [Repealed by 1965 c.26 §6]
     315.280 [Amended by 1953 c.148 §3; repealed by 1965
c.26 §6]
     315.285 [Repealed by 1965 c.26 §6]
     315.290 [Repealed by 1965 c.26 §6]
     315.295 [Repealed by 1965 c.26 §6]
ENVIRONMENT AND
ENERGY
     315.304
Pollution control facilities.
(1) A credit against taxes imposed by ORS chapter 316 (or, if the taxpayer is a
corporation, under ORS chapter 317 or 318) for a pollution control facility or facilities
certified under ORS 468.170 shall be allowed if the taxpayer qualifies under
subsection (4) of this section.
     (2) For a facility certified under ORS
468.170, the maximum credit allowed in any one tax year shall be the lesser of
the tax liability of the taxpayer or the applicable percentage of the certified
cost of the facility, as determined under ORS 468.173 or 468.183, multiplied by
the certified percentage allocable to pollution control, divided by the number
of years of the facilityÂ’s useful life. The number of years of the facilityÂ’s
useful life used in this calculation shall be the remaining number of years of
useful life at the time the facility is certified but not less than one year
nor more than 10 years.
     (3) To qualify for the credit the
pollution control facility must be erected, constructed or installed in
accordance with the provisions of ORS 468.165 (1) and must be certified for tax
relief under ORS 468.155 to 468.190.
     (4) To qualify for a tax credit under this
section:
     (a) The taxpayer who is allowed the credit
must be:
     (A) The owner, including a contract
purchaser, of the trade or business that utilizes
     (B) A person who, as a lessee or pursuant
to an agreement, conducts the trade or business that operates or utilizes such
property; or
     (C) A person who, as an owner, including a
contract purchaser, or lessee, owns or leases a pollution control facility that
is used:
     (i) In a business that is engaged in a
production activity described in 40 C.F.R. 430.20 (as of July 1, 1998); or
     (ii) For recycling, material recovery or
energy recovery as defined in ORS 459.005; and
     (b) The facility must be owned or leased
during the tax year by the taxpayer claiming the credit and must have been in
use and operation during the tax year for which the credit is claimed.
     (5) Regardless of when the facility is
erected, constructed or installed, a credit under this section may be claimed
by a taxpayer:
     (a) For a facility qualifying under ORS
468.165 (1)(a) or (b), only in those tax years which begin on or after January
1, 1967.
     (b) For a facility qualifying under ORS
468.165 (1)(c), in those tax years which begin on or after January 1, 1973.
     (c) For a facility qualifying under ORS
468.165 (1)(d), in those tax years which begin on or after January 1, 1984.
     (6) For a facility certified under ORS
468.170, the maximum total credit allowable shall not exceed one-half of the
certified cost of the facility multiplied by the certified percentage allocable
to pollution control.
     (7) The credit provided by this section is
not in lieu of any depreciation or amortization deduction for the facility to
which the taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318
for such year.
     (8) Upon any sale, exchange or other
disposition of a facility, notice thereof shall be given to the Environmental
Quality Commission who shall revoke the certification covering such facility as
of the date of such disposition. Notwithstanding ORS 468.170 (4)(c), the
transferee may apply for a new certificate under ORS 468.170, but the tax
credit available to such transferee shall be limited to the amount of credit
not claimed by the transferor. The sale, exchange or other disposition of
shares in an S corporation as defined in section 1361 of the Internal Revenue
Code or of a partnerÂ’s interest in a partnership shall not be deemed a sale,
exchange or other disposition of a facility for purposes of this subsection.
     (9) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter. Credits may be carried forward to and used
in a tax year beyond the years specified in ORS 468.170.
     (10) The taxpayer’s adjusted basis for
determining gain or loss shall not be further decreased by any tax credits
allowed under this section.
     (11) A person described in subsection
(4)(a)(C) of this section may, but need not, operate the facility or conduct a
trade or business that utilizes property requiring the facility. If more than
one person has an interest under subsection (4)(a)(C) of this section in the
facility, only one person may claim the credit allowed under this section.
However, portions of the facility may be certified separately in the same
manner as provided in ORS 468.170 (8) if ownership of the portions is in more
than one person. The person claiming the credit as between an owner, including
a contract purchaser, and lessee under this subsection shall be designated in a
written statement signed by both the lessor and lessee of the facility. This
statement shall be filed with the Department of Revenue not later than the
final day of the first tax year for which a tax credit is claimed.
     (12)(a) A taxpayer may not be allowed a
tax credit under this section for any tax year during which the taxpayer is
convicted of a felony under ORS 468.922 to 468.956 that is related to the
facility for which the tax credit would otherwise be claimed, or for the four
tax years succeeding the tax year during which the taxpayer is convicted.
     (b) The amount of any tax credit that is
otherwise allowable under this section but for paragraph (a) of this subsection
shall be considered to be claimed by the taxpayer for purposes of determining
the amount of tax credit that may be claimed in a tax year in which paragraph
(a) of this subsection permits the taxpayer to claim the credit. [1993 c.730 §30
(enacted in lieu of 316.097 and 317.116); 1993 c.560 §110a; 1995 c.746 §1; 1997
c.99 §5; 1997 c.325 §39; 1999 c.1101 §1; 2001 c.928 §4]
     Note: Section 3, chapter 928, Oregon Laws 2001,
provides:
     Sec.
3. (1) Notwithstanding ORS
315.304 (9), in the case of a pollution control facility for which unexpired
tax credits exist as of the tax year of the taxpayer that begins in the 2001
calendar year, if the facility is in use and operation during the tax year
immediately following the third succeeding tax year described in ORS 315.304
(9), any credit under ORS 315.304 remaining unused may be carried forward to
that fourth succeeding tax year. If the facility is in use and operation during
the tax year immediately following the fourth succeeding tax year, any credit
under ORS 315.304 remaining unused may be carried forward to that fifth
succeeding tax year. If the facility is in use and operation during the tax
year immediately following the fifth succeeding tax year, any credit under ORS
315.304 remaining unused may be carried forward to that sixth succeeding tax
year, but may not be carried forward to any tax year thereafter.
     (2) For purposes of this section,
unexpired tax credits include credits claimed pursuant to ORS 315.304 (2) and
credits carried over from previous tax years pursuant to ORS 315.304 (9). [2001
c.928 §3]
     315.305 [Repealed by 1965 c.26 §6]
     315.310 [Repealed by 1965 c.26 §6]
     315.311
Emission reducing production technology or process. (1) A credit against taxes otherwise due
under ORS chapter 316, 317 or 318 for the installation of a
pollution-eliminating production technology or process certified under ORS
468A.098 shall be allowed, subject to the requirements of subsections (3) and
(4) of this section.
     (2) The maximum credit allowed in any one
tax year shall be the lesser of the tax liability of the taxpayer or one-tenth
of the cost certified under ORS 468A.098. A credit may be taken beginning with
the tax year in which certification was issued by the Environmental Quality
Commission.
     (3) To qualify for the credit, the
production technology or process must be installed on or after January 1, 1996,
and on or before December 31, 1999.
     (4) The business location where the
production technology or process was installed must be owned or leased during
the tax year by the taxpayer claiming the credit and must have been in use and
operation during the tax year for which the credit is claimed.
     (5) The credit provided by this section is
not in lieu of any depreciation or amortization deduction for the facility to
which the taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318
for such year.
     (6) Upon any sale, exchange or other
disposition of a business location having a production technology or process
certified under ORS 468A.098, or upon the removal, replacement, shutdown or
other nonuse of a production technology or process certified under ORS
468A.098, notice thereof shall be given to the Environmental Quality
Commission, which shall revoke the certification covering the production
technology or process as of the date of such disposition or nonuse. The
transferee may apply for a new certificate under ORS 468A.096, but the tax
credit available to the transferee shall be limited to the amount of credit not
claimed by the transferor. The sale, exchange or other disposition of shares in
an S corporation as defined in section 1361 of the Internal Revenue Code or of
a partnerÂ’s interest in a partnership shall not be deemed a disposition of a
business for purposes of this subsection.
     (7) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter.
     (8) The taxpayer’s adjusted basis for
determining gain or loss shall not be further decreased by any tax credits
allowed under this section. [1995 c.746 §33; 1997 c.325 §40]
     315.315 [Repealed by 1965 c.26 §6]
     315.320 [Repealed by 1965 c.26 §6]
     315.324
Plastics recycling. (1) A
credit against taxes imposed by ORS chapter 316 (or, if the taxpayer is a
corporation, under ORS chapter 317) for the investments certified under ORS
468.466 shall be allowed if the taxpayer qualifies under subsection (4) of this
section.
     (2) A taxpayer shall be allowed a tax
credit under this section each year for five tax years beginning in the tax
year the investment receives final certification under ORS 468.466. The maximum
credit allowed in any one tax year shall be the lesser of the tax liability of
the taxpayer or 10 percent of the certified cost of the taxpayerÂ’s investment.
     (3) To qualify for the credit the
investment must be made in accordance with the provisions of ORS 468.461.
     (4)(a) The taxpayer who is allowed the
credit must be:
     (A) The owner of the business that
collects, transports or processes reclaimed plastic or manufactures a reclaimed
plastic product;
     (B) A person who, as a lessee or pursuant
to an agreement, conducts the business that collects, transports or processes
reclaimed plastic or manufactures a reclaimed plastic product; or
     (C) A person who, as an owner, lessee or
pursuant to an agreement, owns, leases or has a beneficial interest in a
business that collects, transports or processes reclaimed plastic or
manufactures a reclaimed plastic product. Such person may, but need not,
operate or conduct such a business that collects, transports or processes
reclaimed plastic or manufactures a reclaimed plastic product. If more than one
person has an interest under this subparagraph in a qualifying business and one
or more persons receive a certificate, such person or persons may allocate all
or any part of the certified investment cost among any persons and their
successors or assigns having an interest under this subparagraph. Such
allocation shall be evidenced by a written statement signed by the person or
persons receiving the certificate and designating the persons to whom the
certified investment costs have been allocated and the amount of certified
investment cost allocated to each. This statement shall be filed with the
Department of Revenue not later than the final day of the first tax year for
which a tax credit is claimed pursuant to such agreement. In no event shall the
aggregate certified investment costs allocated between or among more than one
person exceed the amount of the total certified cost of the investment. As used
in this paragraph, “owner” includes a contract purchaser;
     (b) The business must be owned or leased
during the tax year by the taxpayer claiming the credit, except as otherwise
provided in paragraph (a)(C) of this subsection, and must have been collecting,
transporting or processing reclaimed plastic or manufacturing a reclaimed
plastic product during the tax year for which the credit is claimed; and
     (c) The reclaimed plastic collected,
transported, processed or used to manufacture the reclaimed plastic product
must not be an industrial waste generated by the person claiming the tax
credit, but must be purchased from a plastic recycler other than the person
claiming the tax credit.
     (5) The credit provided by this section is
not in lieu of any depreciation or amortization deduction for the investment to
which the taxpayer otherwise may be entitled under ORS chapter 316 or 317 for
such year.
     (6) Upon any sale, exchange, or other
disposition of a qualifying business, notice thereof shall be given to the
Environmental Quality Commission who shall revoke the certification covering
the investment of such business as of the date of such disposition.
Notwithstanding ORS 468.461 (6), the transferee may apply for a new certificate
under ORS 468.466, but the tax credit available to such transferee shall be
limited to the amount of credit not claimed by the transferor. The sale,
exchange or other disposition of shares in an S corporation as defined in
section 1361 of the Internal Revenue Code or of a partnerÂ’s interest in a
partnership shall not be deemed a sale, exchange or other disposition of a
business for purposes of this subsection.
     (7) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter. Credits may be carried forward
to and used in a tax year beyond the years specified in ORS 468.461.
     (8) The taxpayer’s adjusted basis for
determining gain or loss shall not be further decreased by any tax credits
allowed under this section.
     (9) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (10) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (11) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the department terminates
the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS 314.085.
     (12) No credit shall be allowed under this
section and under ORS 468.451 to 468.491 for any portion of a facility for
which the taxpayer claims a tax credit or ad valorem tax relief under ORS
307.405, 315.304, 315.354, 315.356 and 469.185 to 469.225 or 316.116. [1993
c.730 §32 (enacted in lieu of 316.103 and 317.106); 1995 c.746 §7]
     315.325 [Repealed by 1965 c.26 §6]
     315.330 [Repealed by 1965 c.26 §6]
     315.335 [Repealed by 1965 c.26 §6]
     315.340 [Repealed by 1965 c.26 §6]
     315.345 [Repealed by 1965 c.26 §6]
     315.350 [Repealed by 1965 c.26 §6]
     315.354
Energy conservation facilities.
(1) A credit is allowed against the taxes otherwise due under ORS chapter 316
(or, if the taxpayer is a corporation, under ORS chapter 317 or 318), based
upon the certified cost of the facility during the period for which that
facility is certified under ORS 469.185 to 469.225. The credit is allowed as
follows:
     (a) Except as provided in paragraph (b) or
(c) of this subsection, the credit allowed in each of the first two tax years
in which the credit is claimed shall be 10 percent of the certified cost of the
facility, but may not exceed the tax liability of the taxpayer. The credit
allowed in each of the succeeding three years shall be five percent of the
certified cost, but may not exceed the tax liability of the taxpayer.
     (b) If the certified cost of the facility
does not exceed $20,000, the total amount of the credit allowable under
subsection (4) of this section may be claimed in the first tax year for which
the credit may be claimed, but may not exceed the tax liability of the
taxpayer.
     (c) If the facility uses or produces
renewable energy resources or is a renewable energy resource equipment
manufacturing facility, the credit allowed in each of five succeeding tax years
shall be 10 percent of the certified cost of the facility, but may not exceed
the tax liability of the taxpayer.
     (2) Notwithstanding subsection (1) of this
section:
     (a) If the facility is one or more
renewable energy resource systems installed in a single-family dwelling, the
amount of the credit for each system shall be determined as if the facility was
considered a residential alternative energy device under ORS 316.116, but
subject to the maximum credit amount under subsection (4)(b) of this section;
     (b) If the facility is a high-performance
home, the amount of the credit shall equal the amount determined under
paragraph (a) of this subsection plus $3,000; and
     (c) If the facility is a high-performance
home or a homebuilder-installed renewable energy system, the total amount of
the credit may be claimed in the first tax year for which the credit is claimed,
but may not exceed the tax liability of the taxpayer.
     (3) In order for a tax credit to be
allowable under this section:
     (a) The facility must be located in
     (b) The facility must have received final
certification from the Director of the State Department of Energy under ORS
469.185 to 469.225; and
     (c) The taxpayer must be an eligible
applicant under ORS 469.205 (1)(c).
     (4) The total amount of credit allowable
to an eligible taxpayer under this section may not exceed:
     (a) 50 percent of the certified cost of a
renewable energy resources facility, a renewable energy resource equipment
manufacturing facility or a high-efficiency combined heat and power facility;
     (b) $9,000 per single-family dwelling for
homebuilder-installed renewable energy systems;
     (c) $12,000 per single-family dwelling for
homebuilder-installed renewable energy systems, if the dwelling also
constitutes a high-performance home; or
     (d) 35 percent of the certified cost of
any other facility.
     (5)(a) Upon any sale, termination of the
lease or contract, exchange or other disposition of the facility, notice
thereof shall be given to the Director of the State Department of Energy who
shall revoke the certificate covering the facility as of the date of such
disposition. The new owner, or upon re-leasing of the facility, the new lessor,
may apply for a new certificate under ORS 469.215, but the tax credit available
to the new owner shall be limited to the amount of credit not claimed by the
former owner or, for a new lessor, the amount of credit not claimed by the
lessor under all previous leases.
     (b) The State Department of Energy may not
revoke the certificate covering a facility under paragraph (a) of this
subsection if the tax credit associated with the facility has been transferred
to a taxpayer who is an eligible applicant under ORS 469.205 (1)(c)(A).
     (6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in that next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and likewise, any credit not
used in that third succeeding tax year may be carried forward and used in the
fourth succeeding tax year, and likewise, any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth succeeding tax
year, and likewise, any credit not used in that fifth succeeding tax year may
be carried forward and used in the sixth succeeding tax year, and likewise, any
credit not used in that sixth succeeding tax year may be carried forward and
used in the seventh succeeding tax year, and likewise, any credit not used in
that seventh succeeding tax year may be carried forward and used in the eighth
succeeding tax year, but may not be carried forward for any tax year
thereafter. Credits may be carried forward to and used in a tax year beyond the
years specified in subsection (1) of this section only as provided in this
subsection.
     (7) The credit provided by this section is
not in lieu of any depreciation or amortization deduction for the facility to
which the taxpayer otherwise may be entitled for purposes of ORS chapter 316,
317 or 318 for such year.
     (8) The taxpayer’s adjusted basis for
determining gain or loss may not be decreased by any tax credits allowed under
this section.
     (9) If a homebuilder claims a credit under
this section with respect to a homebuilder-installed renewable energy system or
a high-performance home:
     (a) The homebuilder may not claim credits
for both a homebuilder-installed renewable energy system and a high-performance
home with respect to the same dwelling;
     (b) The homebuilder must inform the buyer
of the dwelling that the homebuilder is claiming a tax credit under this
section with respect to the dwelling; and
     (c) The buyer of the dwelling may not
claim a credit under this section that is based on any facility for which the
homebuilder has already claimed a credit.
     (10) The definitions in ORS 469.185 apply
to this section. [1993 c.730 §34 (enacted in lieu of 316.140 and 317.104); 1995
c.746 §15; 1997 c.656 §4; 1999 c.365 §10; 2001 c.583 §1; 2001 c.660 §1a; 2007
c.843 §14]
     Note: Section 27, chapter 843, Oregon Laws 2007,
provides:
     Sec.
27. Section 22 of this 2007
Act [469.197] and the amendments to ORS 315.354, 315.356, 469.185, 469.200,
469.205, 469.206 and 469.215 by sections 14 to 20 of this 2007 Act apply to
facilities acquired, erected, constructed or installed on or after January 1,
2007, and to tax years beginning on or after January 1, 2007. [2007 c.843 §27]
     315.355 [Repealed by 1965 c.26 §6]
     315.356
Other grants as offset to cost of energy conservation facility; changes in
credit eligibility when taxpayer participates in other programs. (1) If a taxpayer obtains a grant from the
federal government in connection with a facility that has been certified by the
Director of the State Department of Energy, the certified cost of the facility
shall be reduced on a dollar for dollar basis. Any income or excise tax credits
that the taxpayer would be entitled to under ORS 315.354 and 469.185 to 469.225
after any reduction described in this subsection may not be reduced by the
federal grant. A taxpayer applying for a federal grant shall notify the
Department of Revenue by certified mail within 30 days after each application,
and after the receipt of any grant.
     (2) A taxpayer is eligible to participate
in both this tax credit program and low interest, government-sponsored loans.
     (3) A taxpayer who receives a tax credit
or property tax relief on a pollution control facility or an alternative energy
device under ORS 307.405, 315.304 or 316.116 is not eligible for a tax credit
on the same facility or device under ORS 315.354 and 469.185 to 469.225.
     (4) A credit may not be allowed under ORS
315.354 if the taxpayer has received a tax credit on the same facility or
device under ORS 315.324. [1993 c.730 §36 (enacted in lieu of 316.141, 316.142
and 317.103); 1995 c.556 §35; 1999 c.623 §3; 2001 c.583 §2; 2007 c.843 §15]
     Note: See note under 315.354.
(Temporary
provisions relating to low emission truck engines)
     Note: Sections 28, 29, 31 and 32, chapter 618,
Oregon Laws 2003, provide:
     Sec.
28. (1) As used in this
section and section 29, chapter 618, Oregon Laws 2003:
     (a) “Combined weight” has the meaning
given that term in ORS 825.005.
     (b) “Motor vehicle” has the meaning given
that term in ORS 825.005.
     (c) “Truck” means a motor vehicle or
combination of vehicles that has a combined weight of more than 26,000 pounds.
     (2) A taxpayer who owns a truck that is
registered in Oregon under the provisions of ORS chapter 803 or 826 and that
has a diesel engine that was purchased in Oregon on or after the effective date
of this 2007 Act [September 27, 2007], and that is certified by the federal
Environmental Protection Agency to emit particulate matter at the rate of 0.01
grams per brake horsepower-hour or less, is allowed a credit against the taxes
otherwise due under ORS chapter 316, if the taxpayer is a resident individual,
or against the taxes otherwise due under ORS chapter 317, if the taxpayer is a
corporation. The total amount of the credit under this section depends on the
number of trucks owned by the taxpayer prior to the purchase, as follows:
     (a) 1 to 10 trucks, $925 for each
qualifying engine purchased.
     (b) 11 to 50 trucks, $705 for each qualifying
engine purchased.
     (c) 51 to 100 trucks, $525 for each
qualifying engine purchased.
     (d) More than 100 trucks, $400 for each
qualifying engine purchased.
     (3) Notwithstanding subsection (2) of this
section, a taxpayer may not claim a credit under this section of more than
$80,000 for purchases in any one year.
     (4) A credit may not be allowed under this
section unless the taxpayer claiming the credit complies with rules adopted by
the Environmental Quality Commission and the Department of Revenue as provided
in section 29, chapter 618, Oregon Laws 2003.
     (5) Except as provided under subsection
(6) of this section, the credit allowed in any one year may not exceed the tax
liability of the taxpayer.
     (6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in the next succeeding
tax year may be carried forward and used in the second succeeding tax year, any
credit not used in the second succeeding tax year may be carried forward and
used in the third succeeding tax year and any credit not used in the third
succeeding tax year may be carried forward and used in the fourth succeeding
tax year but may not be carried forward for any tax year thereafter.
     (7)(a) The credit provided by this section
is not in lieu of any depreciation or amortization deduction for the truck to
which the taxpayer otherwise may be entitled under ORS chapter 316 or 317 for
the tax year.
     (b) The taxpayer’s adjusted basis for
determining gain or loss may not be further decreased by any tax credit allowed
under this section.
     (8)(a) Pursuant to the procedures for a
contested case under ORS chapter 183, the Department of Revenue may order the
disallowance of the credit allowed under this section if it finds, by order,
that the credit was obtained by fraud or misrepresentation.
     (b) If the tax credit is disallowed
pursuant to this subsection, notwithstanding ORS 314.410 or other law, all
prior tax relief provided to the taxpayer shall be forfeited and the Department
of Revenue shall proceed to collect those taxes not paid by the taxpayer as a
result of the prior granting of the credit.
     (c) If the tax credit is disallowed
pursuant to this subsection, the taxpayer shall be denied any further credit
provided under this section from and after the date that the order of
disallowance becomes final.
     (9) If the engine is destroyed by fire,
flood, natural disaster or act of God before all of the credit has been used,
the taxpayer may nevertheless claim the credit as if no destruction had taken
place. In the event of fire, if the fire chief of the fire protection district
or unit determines that the fire was caused by arson, as described in ORS
164.315 and 164.325, by the taxpayer or by another at the taxpayerÂ’s direction,
then the fire chief shall notify the Department of Revenue. If the taxpayer is
convicted of arson, the Department of Revenue shall disallow the credit in
accordance with subsection (8) of this section.
     (10)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the credit
shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117. [2003 c.618 §28; 2007 c.843 §53; 2007 c.855 §17]
     Sec.
29. (1) The Environmental
Quality Commission, after consultation with the Department of Revenue, shall
adopt rules for implementing section 28, chapter 618, Oregon Laws 2003. Rules
may include but need not be limited to rules specifying procedures for
application, review and approval of the tax credit and rules for issuance and
use of a certificate of credit approval.
     (2) The application developed under subsection
(1) of this section shall include:
     (a) The name, address and taxpayer
identification number of the taxpayer;
     (b) The number of trucks owned by the
taxpayer and the number of engines eligible for the tax credit that the
taxpayer has purchased; and
     (c) Any other information that the rules
adopted under subsection (1) of this section may require.
     (3) Applications filed in compliance with
this section and section 28, chapter 618, Oregon Laws 2003, shall be approved
to the extent that the total of estimated tax credits for all approved
purchases of engines for the calendar year is equal to or less than $500,000.
An application may not be approved if the addition of the amount of the tax
credit to the amount of the tax credits for all approved purchases for the
calendar year would exceed $500,000.
     (4) Notwithstanding section 31, chapter
618, Oregon Laws 2003, the Department of Environmental Quality may approve
applications for tax credits for qualifying engines purchased in calendar years
2004 through 2011, although the taxpayer may not claim the credit until a tax
year beginning on or after January 1, 2005.
     (5) The Department of Revenue may
disallow, in whole or in part, a claim for credit under section 28, chapter
618, Oregon Laws 2003, upon the Department of RevenueÂ’s determination that,
under section 28, chapter 618, Oregon Laws 2003, the taxpayer is not entitled
to the credit or is entitled to only a portion of the amount claimed.
     (6) The Department of Environmental
Quality shall charge a fee of $50 for each engine for which a taxpayer applies
for a tax credit. The fee is payable to the department and may not be refunded
to the applicant for any reason. [2003 c.618 §29; 2007 c.843 §54; 2007 c.855 §18]
     Sec.
31. The tax credit
established in section 28, chapter 618, Oregon Laws 2003, applies to tax years
beginning on and after January 1, 2005, and to engine model years 2003 through
2011. [2003 c.618 §31; 2007 c.843 §55; 2007 c.855 §19]
     Sec.
32. A certificate of credit
approval may not be issued under section 29, chapter 618, Oregon Laws 2003,
after December 31, 2011. [2003 c.618 §32; 2007 c.843 §56; 2007 c.855 §20]
     Note: Section 57, chapter 843, Oregon Laws 2007,
and section 21, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
57. The amendments to
sections 28, 29, 31 and 32, chapter 618, Oregon Laws 2003, by sections 53 to 56
of this 2007 Act apply to certificates of credit approval under section 29,
chapter 618, Oregon Laws 2003, that are issued on or after the effective date
of this 2007 Act [September 27, 2007]. [2007 c.843 §57]
     Sec.
21. The amendments to
sections 28, 29, 31 and 32, chapter 618, Oregon Laws 2003, by sections 17 to 20
of this 2007 Act apply to certificates of credit approval under section 29,
chapter 618, Oregon Laws 2003, that are issued on or after the effective date
of this 2007 Act [September 27, 2007]. [2007 c.855 §21]
(Temporary
provisions relating to diesel engines)
     Note: Section 47, chapter 843, Oregon Laws 2007,
and section 12, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
47. (1) A personal income or
corporate income or excise taxpayer is allowed a credit against the taxes that
are otherwise due under ORS chapter 316, 317 or 318 for the certified costs of
a repower of a nonroad Oregon diesel engine or retrofit of an Oregon diesel
engine that occurs after the effective date of this 2007 Act [September 27,
2007] if:
     (a) The repower or retrofit has been
identified as qualifying for the credit under rules adopted by the
Environmental Quality Commission under section 44 of this 2007 Act;
     (b) The engine will constitute an
     (c) The taxpayer has obtained a tax credit
cost certification from the Department of Environmental Quality under section
51 of this 2007 Act for the cost of the repower or retrofit.
     (2) The maximum amount of the tax credit
allowed under this section is limited to:
     (a) 25 percent of the certified cost of
each qualifying repower; and
     (b) 50 percent of the certified cost of
each qualifying retrofit.
     (3) The amount of the tax credit allowed
to the taxpayer under this section in any one tax year may not exceed the tax
liability of the taxpayer for the tax year.
     (4) Any tax credit that is allowed under
this section, but limited by subsection (3) of this section, and that is not
used by the taxpayer in a particular tax year may be carried forward and offset
against the taxpayerÂ’s tax liability as prescribed in subsection (3) of this
section for the next succeeding tax year. Any credit remaining unused in the
next succeeding tax year may be carried forward and offset against the taxpayerÂ’s
tax liability as prescribed in subsection (3) of this section for the second
succeeding tax year. Any credit remaining unused in the second succeeding tax
year may be carried forward and offset against the taxpayerÂ’s tax liability as
prescribed in subsection (3) of this section for the third succeeding tax year,
but may not be carried forward for any tax year thereafter.
     (5) The credit allowed under this section
is not in lieu of any depreciation or amortization deduction for the engine to
which the taxpayer otherwise may be entitled for purposes of ORS chapter 316,
317 or 318. The taxpayerÂ’s adjusted basis for determining gain or loss may not be
decreased by any tax credits allowed under this section.
     (6)(a) The Department of Revenue may
disallow the credit allowed under this section if the department finds that the
credit was obtained by fraud or misrepresentation, or if the department learns
that the engine that was the subject of the qualifying repower or retrofit was
destroyed by arson committed by the taxpayer, or if the engine no longer meets
the requirements for obtaining the tax credit.
     (b) If the tax credit is disallowed
pursuant to this subsection, notwithstanding ORS 314.410 or other law, all
prior tax relief provided to the taxpayer shall be forfeited, the department
shall proceed to collect those taxes not paid by the taxpayer as a result of
the prior granting of the credit and the taxpayer shall be denied any further
credit provided under this section.
     (c) The department may perform activities
necessary to ensure that recipients of the tax credit comply with applicable
requirements.
     (7)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (8) The taxpayer shall claim the credit on
a form prescribed by the Department of Revenue containing the information
required by the Department of Revenue. The taxpayer shall maintain the tax
credit cost certification issued by the Department of Environmental Quality
under section 51 of this 2007 Act in the records of the taxpayer for the length
of time prescribed by the Department of Revenue and shall provide a copy of the
cost certification to the Department of Revenue if requested.
     (9) A taxpayer may not claim a credit
under this section and ORS 315.304 with respect to the same diesel engine or
group of diesel engines. A taxpayer may claim a credit under this section and
under ORS 469.185 to 469.225 with respect to the same diesel engine or group of
diesel engines if the taxpayer and diesel engines otherwise meet the
requirements to be allowed a tax credit under ORS 469.185 to 469.225. [2007
c.843 §47]
     Sec.
12. (1) A personal income or
corporate income or excise taxpayer is allowed a credit against the taxes that
are otherwise due under ORS chapter 316, 317 or 318 for the certified costs of
a repower of a nonroad Oregon diesel engine or retrofit of an Oregon diesel
engine that occurs after the effective date of this 2007 Act [September 27,
2007] if:
     (a) The repower or retrofit has been
identified as qualifying for the credit under rules adopted by the
Environmental Quality Commission under section 8 of this 2007 Act [468A.799];
     (b) The engine will constitute an
     (c) The taxpayer has obtained a tax credit
cost certification from the Department of Environmental Quality under section
16 of this 2007 Act for the cost of the repower or retrofit.
     (2) The maximum amount of the tax credit
allowed under this section is limited to:
     (a) 25 percent of the certified cost of
each qualifying repower; and
     (b) 50 percent of the certified cost of
each qualifying retrofit.
     (3) The amount of the tax credit allowed
to the taxpayer under this section in any one tax year may not exceed the tax
liability of the taxpayer for the tax year.
     (4) Any tax credit that is allowed under
this section, but limited by subsection (3) of this section, and that is not
used by the taxpayer in a particular tax year may be carried forward and offset
against the taxpayerÂ’s tax liability as prescribed in subsection (3) of this
section for the next succeeding tax year. Any credit remaining unused in the
next succeeding tax year may be carried forward and offset against the taxpayerÂ’s
tax liability as prescribed in subsection (3) of this section for the second
succeeding tax year. Any credit remaining unused in the second succeeding tax
year may be carried forward and offset against the taxpayerÂ’s tax liability as
prescribed in subsection (3) of this section for the third succeeding tax year,
but may not be carried forward for any tax year thereafter.
     (5) The credit allowed under this section
is not in lieu of any depreciation or amortization deduction for the engine to
which the taxpayer otherwise may be entitled for purposes of ORS chapter 316,
317 or 318. The taxpayerÂ’s adjusted basis for determining gain or loss may not
be decreased by any tax credits allowed under this section.
     (6)(a) The Department of Revenue may
disallow the credit allowed under this section if the department finds that the
credit was obtained by fraud or misrepresentation, or if the department learns
that the engine that was the subject of the qualifying repower or retrofit was
destroyed by arson committed by the taxpayer, or if the engine no longer meets
the requirements for obtaining the tax credit.
     (b) If the tax credit is disallowed
pursuant to this subsection, notwithstanding ORS 314.410 or other law, all
prior tax relief provided to the taxpayer shall be forfeited, the department
shall proceed to collect those taxes not paid by the taxpayer as a result of the
prior granting of the credit and the taxpayer shall be denied any further
credit provided under this section.
     (c) The department may perform activities
necessary to ensure that recipients of the tax credit comply with applicable
requirements.
     (7)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (8) The taxpayer shall claim the credit on
a form prescribed by the Department of Revenue containing the information
required by the Department of Revenue. The taxpayer shall maintain the tax
credit cost certification issued by the Department of Environmental Quality
under section 16 of this 2007 Act in the records of the taxpayer for the length
of time prescribed by the Department of Revenue and shall provide a copy of the
cost certification to the Department of Revenue if requested.
     (9) A taxpayer may not claim a credit
under this section and ORS 315.304 with respect to the same diesel engine or
group of diesel engines. A taxpayer may claim a credit under this section and
under ORS 469.185 to 469.225 with respect to the same diesel engine or group of
diesel engines if the taxpayer and diesel engines otherwise meet the
requirements to be allowed a tax credit under ORS 469.185 to 469.225. [2007
c.855 §12]
     Note: Section 48, chapter 843, Oregon Laws 2007,
and section 13, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
48. (1) A person that has
obtained a tax credit cost certification from the Department of Environmental
Quality under section 51 of this 2007 Act may transfer the cost certification
to a personal income or corporate income or excise taxpayer in exchange for
consideration from the taxpayer.
     (2) In order for a credit under section 47
of this 2007 Act to be claimed by a person that does not own the repowered or
retrofitted engine that qualifies for the credit, the person that received the
tax credit cost certification and the taxpayer that will claim the credit must
jointly file a cost certification transfer notice with the Department of
Revenue to transfer the cost certification to the taxpayer. The transfer notice
shall be on a form prescribed by the department and shall contain any
information required by the department.
     (3) The cost certification transfer notice
shall be filed with the Department of Revenue prior to the first tax year for
which a credit will be claimed under section 47 of this 2007 Act. A transfer is
not allowed under this section if the transferor has claimed any portion of the
credit allowed under section 47 of this 2007 Act. [2007 c.843 §48]
     Sec.
13. (1) A person that has
obtained a tax credit cost certification from the Department of Environmental
Quality under section 16 of this 2007 Act may transfer the cost certification
to a personal income or corporate income or excise taxpayer in exchange for
consideration from the taxpayer.
     (2) In order for a credit under section 12
of this 2007 Act to be claimed by a person that does not own the repowered or
retrofitted engine that qualifies for the credit, the person that received the
tax credit cost certification and the taxpayer that will claim the credit must
jointly file a cost certification transfer notice with the Department of
Revenue to transfer the cost certification to the taxpayer. The transfer notice
shall be on a form prescribed by the department and shall contain any
information required by the department.
     (3) The cost certification transfer notice
shall be filed with the Department of Revenue prior to the first tax year for
which a credit will be claimed under section 12 of this 2007 Act. A transfer is
not allowed under this section if the transferor has claimed any portion of the
credit allowed under section 12 of this 2007 Act. [2007 c.855 §13]
     Note: Section 49, chapter 843, Oregon Laws 2007,
and section 14, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
49. Sections 47 and 48 of this
2007 Act apply to diesel engine repower and retrofit tax credit cost
certifications issued in tax years beginning on or after January 1, 2008. [2007
c.843 §49]
     Sec.
14. Sections 12 and 13 of
this 2007 Act apply to diesel engine repower and retrofit tax credit cost
certifications issued in tax years beginning on or after January 1, 2008. [2007
c.855 §14]
     Note: Section 58, chapter 843, Oregon Laws 2007,
and section 22, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
58. (1) Sections 47 and 48
of this 2007 Act and section 28, chapter 618, Oregon Laws 2003, are added to
and made a part of ORS chapter 315.
     (2) Sections 50 and 51 of this 2007 Act
and section 29, chapter 618, Oregon Laws 2003, are added to and made a part of
ORS chapter 468A. [2007 c.843 §58]
     Sec.
22. (1) Sections 12 and 13
of this 2007 Act and section 28, chapter 618, Oregon Laws 2003, are added to
and made a part of ORS chapter 315.
     (2) Sections 15 and 16 of this 2007 Act
and section 29, chapter 618, Oregon Laws 2003, are added to and made a part of
ORS chapter 468A. [2007 c.855 §22]
     Note: Section 52, chapter 843, Oregon Laws 2007,
and section 16a, chapter 855, Oregon Laws 2007, are substantially the same and
provide:
     Sec.
52. Sections 47, 48, 50 and
51 of this 2007 Act are repealed on January 2, 2018. [2007 c.843 §52]
     Sec.
16a. Sections 12 to 16 of
this 2007 Act are repealed on January 2, 2018. [2007 c.855 §16a]
     315.357
Time limit applicable to energy conservation tax credit. A taxpayer may not be allowed a credit under
ORS 315.354 if the first tax year for which the credit with respect to a
facility certified under ORS 469.215 would otherwise be allowed begins on or
after January 1, 2016. [2007 c.843 §24]
     315.360 [Amended by 1953 c.132 §3; repealed by 1965
c.26 §6]
     315.365 [Repealed by 1965 c.26 §6]
     315.455 [Repealed by 1965 c.26 §6]
     315.460 [Repealed by 1965 c.26 §6]
     315.465
Biofuels and fuel blends.
(1) As used in this section and ORS 315.469:
     (a) “Alternative fuel vehicle” means a
motor vehicle that can operate on a fuel blend.
     (b) “Biodiesel” has the meaning given that
term in ORS 646.905.
     (c) “Biomass” has the meaning given that
term in ORS 315.141.
     (d) “Bone dry ton” means matter that is
dried to less than one percent moisture content and that weighs 2,000 pounds.
     (e) “Fuel blend” means diesel fuel of
blends equal to or exceeding 99 percent biodiesel or gasoline of a blend equal
to or exceeding 85 percent methanol or ethanol.
     (2)(a) A resident individual shall be
allowed a credit against the taxes otherwise due under ORS chapter 316 for
costs paid or incurred to purchase fuel blends for use in an alternative fuel
vehicle.
     (b) A resident individual shall be allowed
a credit against the taxes otherwise due under ORS chapter 316 for costs paid
or incurred to purchase forest, rangeland or agriculture waste or residue
densified and dried prepared solid biofuel that contains 100 percent biomass.
     (3) The amount of the credit shall be
calculated as follows:
     (a) Determine the quantity of fuel blend
or solid biofuel purchased by the taxpayer during the tax year;
     (b) Categorize the fuel blend or solid
biofuel as prescribed in rules adopted under ORS 469.785; and
     (c) Multiply the quantity of fuel blend or
solid biofuel in a particular category by the appropriate credit rate for that
category, expressed in dollars and cents.
     (4) Notwithstanding subsection (3) of this
section:
     (a) The credit allowed under this section
for diesel blended fuel is equal to $0.50 per gallon and in any one tax year may
not exceed $200 per
     (b) The credit allowed for gasoline
blended fuel is equal to $0.50 per gallon and in any one tax year may not
exceed $200 per
     (c) The credit allowed for forest, rangeland
or agriculture waste or residue densified and dried prepared solid biofuel is
equal to $10 per bone dry ton of solid biofuel and in any one tax year may not
exceed $200 per taxpayer.
     (d) The credit allowed in any one tax year
may not exceed the tax liability of the taxpayer and may not be carried forward
to a subsequent tax year.
     (5) For each tax year for which a credit
is claimed under this section, the taxpayer shall maintain records sufficient
to determine the taxpayerÂ’s purchase of qualifying fuel blends. A taxpayer
shall maintain the records required under this subsection for at least five
years.
     (6) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (7) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (8) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (9) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each. [2007
c.739 §27]
     Note: Section 29, chapter 739, Oregon Laws 2007,
provides:
     Sec.
29. Sections 27 [315.465]
and 28 [315.469] of this 2007 Act apply to tax years beginning on or after
January 1, 2007, and before January 1, 2013. [2007 c.739 §29]
     315.469
Biodiesel used in home heating.
(1) A resident individual shall be allowed a tax credit against the taxes
otherwise due under ORS chapter 316 for costs paid or incurred to purchase fuel
for primary home space heating that is at least 20 percent biodiesel. The
credit allowed under this section is the lesser of five cents per gallon or
$200.
     (2) The credit allowed in any one tax year
may not exceed the tax liability of the taxpayer and may not be carried forward
to a subsequent tax year.
     (3) For each tax year for which a credit
is claimed under this section, the taxpayer shall maintain records sufficient
to determine the taxpayerÂ’s purchase of qualifying fuel for primary home space
heating. A taxpayer shall maintain the records required under this subsection
for at least five years.
     (4) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (5) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (6) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (7) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each. [2007
c.739 §28]
     Note: See note under 315.465.
ECONOMIC
DEVELOPMENT
     315.504 [1993 c.730 §38 (enacted in lieu of 316.104
and 317.140); repealed by 2005 c.80 §7]
     315.505 [Repealed by 1965 c.26 §6]
     315.507
Electronic commerce in designated enterprise zone. (1) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, shall be allowed to a taxpayer that is:
     (a) A business firm engaged or preparing
to engage in electronic commerce in an enterprise zone that has been approved
for electronic commerce designation under ORS 285C.095; or
     (b) A business firm engaged or preparing
to engage in electronic commerce in a city that has been designated for
electronic commerce under ORS 285C.100.
     (2) The credit shall equal 25 percent of
the investments made by the business firm in capital assets:
     (a) Located in the area designated for
electronic commerce;
     (b) Used or constructed, installed or
otherwise prepared for use in electronic commerce operations within the area
designated for electronic commerce that are related to electronic commerce
sales, customer service, order fulfillment, broadband infrastructure or other
electronic commerce operations; and
     (c)(A) During the period that commences
when the firm becomes an authorized business firm under ORS 285C.140 and ends
on the last day of the income or corporate excise tax year in which begins the
first property tax year in which qualified property of the firm used in
eligible electronic commerce activities is exempt from property taxation under
ORS 285C.175; or
     (B) During any income or corporate excise
tax year in which begins a property tax year in which qualified property of the
firm used in eligible electronic commerce operations is exempt from property
taxation under ORS 285C.175.
     (3) Except as provided in subsection (5)
of this section, the credit must be claimed for the income or corporate excise
tax year that is:
     (a) The year in which the investment for
which a credit is being claimed is made; and
     (b) A year, all or part of which is
described in subsection (2)(c) of this section.
     (4) A credit allowed under this section
for any one tax year may not exceed the lesser of $2 million or the tax
liability of the taxpayer.
     (5) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (6) The credit allowed under this section
is not in lieu of any depreciation or amortization deduction to which the
taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for the
tax year.
     (7) The taxpayer’s adjusted basis for
determining gain or loss may not be further decreased by any amount of credit
allowed under this section.
     (8)(a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed under this section shall be determined in a manner
consistent with ORS 316.117.
     (c) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (9) As used in this section, “authorized
business firm,” “business firm,” “electronic commerce” and “qualified property”
have the meanings given those terms in ORS 285C.050. [2001 c.957 §8; 2003 c.65 §1;
2003 c.662 §64]
     315.508
Recordkeeping requirements for electronic commerce credit; disallowance of
credit. (1) A taxpayer who
has claimed a credit under ORS 315.507 shall maintain records sufficient to
show:
     (a) That within three years following the
year in which a credit was claimed under ORS 315.507, property owned or
operated by the taxpayer and used in electronic commerce operations was exempt
from property taxation under ORS 285C.175; and
     (b) That at no time was property described
in paragraph (a) of this subsection disqualified from exemption pursuant to ORS
285C.240.
     (2) The taxpayer shall provide these
records to the Department of Revenue if requested by the department.
     (3) The taxpayer shall maintain the
records described in this section for at least five years following the last
tax year for which the taxpayer claims any credit under ORS 315.507.
     (4) If property owned or operated by the
taxpayer is not both used in electronic commerce operations in an area
designated for electronic commerce and exempt from property taxation under ORS
285C.175 within three years following the year in which a credit is first
claimed under ORS 315.507, the department shall disallow the credit for the
current or any prior tax year and collect any taxes that were not paid as a
result of application of the credit.
     (5) If property owned or operated by the
taxpayer, used in electronic commerce operations in an area designated for
electronic commerce and exempt from property taxation under ORS 285C.175 is
disqualified from exemption under ORS 285C.240, the department shall disallow
the credit for the current or any prior tax year and collect any taxes that
were not paid as a result of application of the credit.
     (6) For purposes of collecting taxes due
under subsection (4) or (5) of this section, the department shall have the
benefit of all laws of this state pertaining to the collection of income and
corporate excise taxes. No assessment of these taxes shall be necessary and no
statute of limitations shall preclude the collection of these taxes. [2003 c.65
§2 and 2003 c.662 §65]
     315.510 [Repealed by 1965 c.26 §6]
     315.511
Advanced telecommunications facilities. (1) There shall be allowed a credit against the taxes otherwise due
under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapters
317 and 318) for advanced telecommunications facilities, as defined in ORS
285C.530, that have been certified by the Economic and Community Development
Department.
     (2) The amount of the credit shall equal
20 percent of the certified cost of the facilities that was actually paid or
incurred by the taxpayer, except that:
     (a) The amount of the credit may not
include facility costs that were paid using moneys withdrawn from the taxpayerÂ’s
Telecommunications Infrastructure Account established pursuant to ORS 759.405;
and
     (b) Revenues forgone by the taxpayer upon
the taxpayerÂ’s waiver of installation charges for advanced telecommunications
facilities to schools, rural health clinics or libraries may be added to the
amount of the credit.
     (3) The credit may be claimed by the
taxpayer for the tax year in which the advanced telecommunications facilities
are placed in service.
     (4) The credit allowed under this section
may not exceed the tax liability of the taxpayer and may not be carried forward
to a succeeding tax year.
     (5) In the case of a credit allowed under
this section:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (6) The credit shall be claimed on a form
prescribed by the Department of Revenue and containing any information as may
be required by the department. The taxpayer shall attach a copy of the
certification to the return for the tax year for which the credit is claimed. [2001
c.957 §15]
     315.514
Film production development contributions; rules. (1) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, is allowed to a taxpayer for certified film production
development contributions made by the taxpayer during the tax year to the
Oregon Production Investment Fund established under ORS 284.367.
     (2)(a) The amount of the tax credit shall
equal the amount certified for credit by the Oregon Film and Video Office,
except that a contribution must equal at least 90 percent of the tax credit.
     (b) The Oregon Film and Video Office shall
adopt rules for determining the amount of tax credit to be certified by the
office. The rules shall be adopted in order to achieve the following goals:
     (A) Subject to paragraph (a) of this
subsection, generate contributions for which tax credits of $5 million are
certified for each fiscal year;
     (B) Maximize income and excise tax
revenues that are retained by the State of
     (C) Provide the necessary financial
incentives for taxpayers to make contributions, taking into consideration the
impact of granting a credit upon a taxpayerÂ’s federal income tax liability.
     (3) A taxpayer seeking a tax credit under
this section shall apply for tax credit certification to the Oregon Film and
Video Office on a form supplied by the office. The taxpayer shall include
payment of the contribution at the time of application.
     (4) Contributions made under this section
shall be deposited in the Oregon Production Investment Fund.
     (5)(a) Upon receipt of a contribution, the
Oregon Film and Video Office shall issue to the taxpayer written certification
of the amount certified for tax credit under this section to the extent the
amount certified for tax credit, when added to all amounts previously certified
for tax credit under this section, does not exceed $5 million for the fiscal
year in which certification is made.
     (b) The Oregon Film and Video Office is
not liable, and a refund of a contributed amount need not be made, if a
taxpayer who has received tax credit certification is unable to use all or a
portion of the tax credit to offset the tax liability of the taxpayer.
     (6) To the extent the Oregon Film and
Video Office does not certify contributed amounts as eligible for a tax credit
under this section, the taxpayer may request a refund of the amount the
taxpayer contributed, and the office shall refund that amount.
     (7)(a) Except as provided in paragraph (b)
of this subsection, a tax credit claimed under this section may not exceed the
tax liability of the taxpayer and may not be carried over to another tax year.
     (b) Any tax credit otherwise allowable under
this section that is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year but may not be carried
forward for any tax year thereafter.
     (c) A taxpayer is not eligible for a tax
credit under this section if the first tax year for which the credit would
otherwise be allowed begins on or after January 1, 2012.
     (8) If a tax credit is claimed under this
section by a nonresident or part-year resident taxpayer, the amount shall be
allowed without proration under ORS 316.117.
     (9) A taxpayer who has received a tax
credit certificate under this section may sell the certificate to another
taxpayer. The sale is effective only if a notice of tax credit certificate sale
is filed with the Department of Revenue. The notice shall be filed on a form
prescribed by the department on or before the date on which the income or
corporate excise tax return of the buyer for the first year for which the
credit could be claimed is filed or due, whichever is earlier. The notice form
shall include the following information:
     (a) The name and taxpayer identification
number of the seller;
     (b) The name and taxpayer identification
number of the buyer;
     (c) The amount of the tax credit
certificate that is being sold to the buyer;
     (d) The amount of the tax credit
certificate that is being retained by the seller; and
     (e) Any other information required by the
department.
     (10) If requested by the Department of
Revenue, the Oregon Film and Video Office shall supply a list of taxpayers that
have obtained tax credit certification under this section, and for each listed
taxpayer disclose:
     (a) The amount of contribution made by the
taxpayer; and
     (b) The amount certified for tax credit
under this section.
     (11) If the amount of contribution for
which a tax credit certification is made is allowed as a deduction for federal
tax purposes, the amount of the contribution shall be added to federal taxable
income for
     Note: Section 60, chapter 843, Oregon Laws 2007,
provides:
     Sec.
60. The amendments to ORS
315.514 by section 59 of this 2007 Act apply to tax credit certifications
issued by the Oregon Film and Video Office on or after the effective date of
this 2007 Act [September 27, 2007]. [2007 c.843 §60]
     315.515 [Repealed by 1965 c.26 §6]
     315.517
Water transit vessels. (1)
As used in this section, “water transit vessel” means a United States Coast
Guard licensed and inspected vessel that is primarily designed to carry 50 or
more passengers and vehicles or 50 or more passengers only for a published fee
across a body of water between two or more fixed points on a regular schedule.
     (2)(a) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, is allowed to a resident employer based upon wages
actually paid by the taxpayer to a person employed in this state to assist in
the manufacture of a water transit vessel.
     (b) The credit allowed under this section:
     (A) Must be claimed for the year in which
the wages were paid;
     (B) May not be claimed for wages paid to
an employee who was employed by the employer during the previous tax year; and
     (C) Must be for wages paid as a result of
an increase in the number of full-time equivalent employees employed by the
eligible taxpayer when compared to the previous tax year.
     (3) The amount of the credit provided
under this section shall be equal to the lesser of:
     (a) $5,000; or
     (b) 15 percent of the wages paid to
employees during the tax year for which the credit is claimed.
     (4) The tax credit available under this
section may not exceed the tax liability of the taxpayer for the tax year.
     (5)(a) Wages taken into account for the
purposes of subsection (3) of this section may not include any amount paid by
the employer to an employee for whom the employer receives federal funds for
on-the-job training.
     (b) A tax credit under this section is not
in lieu of any deduction for payroll costs or any other expense to which the
taxpayer may be entitled.
     (6)(a) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
     (b) If a change in the taxable year of the
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117. [2005 c.677 §1]
     Note: Section 2, chapter 677, Oregon Laws 2005,
provides:
     Sec.
2. Section 1 of this 2005
Act [315.517] applies to persons initially hired on or after January 1, 2006,
and for which a credit is claimed for tax years beginning on or after January
1, 2006, and before January 1, 2013. [2005 c.677 §2]
     Note: 315.517 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 315 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     315.520 [Repealed by 1965 c.26 §6]
     315.521
University venture development fund contributions. (1) There shall be allowed a credit against
the taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, under ORS chapter 317 or 318, for amounts contributed to a
university venture development fund established under ORS 351.697, to the
extent the university that established the fund issued a tax credit certificate
to the taxpayer.
     (2) The total amount of the credit allowed
to a taxpayer shall equal 60 percent of the amount stated on the tax credit
certificate. Except as provided in subsection (3) of this section, the amount
of the credit allowed in any one tax year shall equal 20 percent of the amount
actually contributed to the fund.
     (3) The credit allowed under this section
may not exceed $50,000 or the tax liability of the taxpayer for the tax year.
     (4) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit in the same manner and subject to the same limitations as a resident.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (b) If a change in the tax year of a
taxpayer occurs as described in ORS 314.085 or if the Department of Revenue
terminates the taxpayerÂ’s tax year under ORS 314.440, the credit shall be
prorated or computed in a manner consistent with ORS 314.085.
     (c) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit shall be determined in a manner consistent with ORS 316.117.
     (5) A taxpayer claiming a credit under
this section shall add to federal taxable income for
     315.525 [Repealed by 1965 c.26 §6]
     315.530 [Repealed by 1965 c.26 §6]
     315.535 [Repealed by 1965 c.26 §6]
     315.540 [Repealed by 1965 c.26 §6]
     315.545 [Repealed by 1965 c.26 §6]
     315.550 [Repealed by 1965 c.26 §6]
     315.555 [Repealed by 1965 c.26 §6]
     315.560 [Repealed by 1965 c.26 §6]
     315.570 [Repealed by 1965 c.26 §6]
     315.575 [Repealed by 1965 c.26 §6]
     315.580 [Repealed by 1965 c.26 §6]
     315.585 [Repealed by 1965 c.26 §6]
     315.590 [Repealed by 1965 c.26 §6]
HEALTH
     315.604
Bone marrow donor expense.
(1) As used in this section:
     (a) “Bone marrow donor expense” means the
sum of the amounts paid or incurred during the tax year by an employer for the
following:
     (A) Development of an employee bone marrow
donation program.
     (B) Employee education related to bone
marrow donation, including but not limited to the need for donors and an
explanation of the procedures used to determine tissue type and donate bone
marrow.
     (C) Payments to a health care provider for
determining the tissue type of an employee who agrees to register or registers
as a bone marrow donor.
     (D) Wages paid to an employee for time
reasonably related to tissue typing and bone marrow donation.
     (E) Transportation of an employee to the
site of a donation or any other service which is determined by the Department
of Human Services by rule as essential for a successful bone marrow donation.
     (b) “Employee” means an individual who:
     (A) Is regularly employed by the taxpayer
for more than 20 hours per week;
     (B) Who is not a temporary or seasonal
employee; and
     (C) Whose wages are subject to withholding
under ORS 316.162 to 316.221.
     (c) “Wages” has the meaning given the term
for purposes of ORS 316.162 to 316.221.
     (2) A business tax credit against the
taxes otherwise due under ORS chapter 316 for the tax year is allowed to a
resident employer, or if the employer is a corporation, to the employer against
the taxes otherwise due under ORS chapter 317. The amount of the credit is
equal to 25 percent of the bone marrow donor expense paid or incurred during
the tax year by an employer to provide a program for employees who are
potential bone marrow donors or who actually become bone marrow donors.
     (3)(a) Except as provided under paragraph
(b) of this subsection, the allowance of a credit under this section shall not
affect the computation of taxable income for purposes of ORS chapter 316 or
317.
     (b) If in determining the amount of the
credit for any tax year an amount allowed as a deduction under section 170 of
the Internal Revenue Code is included in bone marrow donation expense, the
amount allowed as a deduction shall be added to federal taxable income.
     (4) The credit allowed under this section
shall be allowed to a nonresident employer in the same manner as the credit is
allowed to a resident employer.
     (5) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular tax year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year. Any
credit remaining unused in such second succeeding tax year may be carried
forward and used in the third succeeding tax year. Any credit remaining unused
in such third succeeding tax year may be carried forward and used in the fourth
succeeding tax year. Any credit remaining unused in such fourth succeeding tax
year may be carried forward and used in the fifth succeeding tax year, but may
not be used in any tax year thereafter. [1993 c.730 §40 (enacted in lieu of 316.155
and 317.149)]
     Note: Section 12, chapter 652, Oregon Laws 1991,
provides:
     Sec.
12. ORS 315.604 and the
amendments to ORS 318.031 by section 11, chapter 652, Oregon Laws 1991, apply
to bone marrow donation expense incurred in tax years beginning on or after
January 1, 1991, and on or before December 31, 2001. [1991 c.652 §12; 1995
c.746 §37]
     315.610
Long term care insurance.
(1) A taxpayer shall be allowed a credit against the taxes otherwise due under
ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or
318) for premium costs actually paid or incurred during the tax year for a long
term care insurance policy:
     (a) For long term care coverage of the
taxpayer or a dependent or parent of the taxpayer; or
     (b) That is offered by the taxpayer to
employees of the taxpayer that are employed in this state.
     (2) The amount of the credit allowed under
this section shall equal the lesser of:
     (a) Fifteen percent of the total amount of
long term care insurance premiums paid or incurred by the taxpayer during the
tax year; or
     (b)(A) If the long term care insurance
coverage is for the taxpayer and the dependents or parents of the taxpayer,
$500; or
     (B) If the long term care insurance
coverage is for Oregon-based employees of the taxpayer and their dependents or
parents, $500 multiplied by the number of employees covered.
     (3) A credit may not be allowed under this
section if the policy was first issued prior to January 1, 2000.
     (4) The credit allowed under this section
may not exceed the tax liability of the taxpayer and may not be carried forward
to another tax year.
     (5) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (c) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each.
     (d) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
     (6) As used in this section, “long term
care insurance” has the meaning given that term in ORS 743.652. [1999 c.1005 §2]
     315.613
Credit available to persons providing rural medical care and affiliated with
certain rural hospitals. (1)
A resident or nonresident individual certified as eligible under ORS 442.563,
licensed under ORS chapter 677, who is engaged in the practice of medicine, and
who has a rural practice that amounts to 60 percent of the individualÂ’s
practice, shall be allowed an annual credit against taxes otherwise due under
this chapter in the sum of $5,000 during the time in which the individual
retains such practice and membership if the individual is actively practicing
in and is a member of the medical staff of one of the following hospitals:
     (a) A type A hospital designated as such
by the Office of Rural Health;
     (b) A type B hospital designated as such
by the Office of Rural Health if the hospital is:
     (A) Not within the boundaries of a
metropolitan statistical area;
     (B) Located 30 or more highway miles from
the closest hospital within the major population center in a metropolitan
statistical area; or
     (C) Located in a county with a population
of less than 75,000;
     (c) A type C rural hospital, if the Office
of Rural Health makes the findings required by ORS 315.619; or
     (d) A rural critical access hospital.
     (2) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117. If a
change in the status of a taxpayer from resident to nonresident or from
nonresident to resident occurs, the credit allowed by this section shall be
determined in a manner consistent with ORS 316.117.
     (3) For purposes of this section, an “individual’s
practice” shall be determined on the basis of actual time spent in practice
each week in hours or days, whichever is considered by the Office of Rural
Health to be more appropriate. In the case of a shareholder of a corporation or
a member of a partnership, only the time of the individual shareholder or
partner shall be considered and the full amount of the credit shall be allowed
to each shareholder or partner who qualifies in an individual capacity.
     (4) As used in this section:
     (a) “Type A hospital,” “type B hospital”
and “type C hospital” have the meaning for those terms provided in ORS 442.470.
     (b) “Rural critical access hospital” means
a facility that meets the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and
that has been designated a critical access hospital by the Office of Rural
Health and the Department of Human Services. [Formerly 316.143]
     315.616
Additional providers who may qualify for credit. A resident or nonresident individual who is
certified as eligible under ORS 442.561, 442.562, 442.563 or 442.564, and is
licensed as a physician or podiatric physician and surgeon under ORS chapter
677, licensed as a physician assistant under ORS chapter 677, licensed as a
nurse practitioner under ORS chapter 678, licensed as a certified registered
nurse anesthetist under ORS chapter 678, licensed as a dentist under ORS
chapter 679 or licensed as an optometrist under ORS 683.010 to 683.335 is
entitled to the tax credit described in ORS 315.613 even if not a member of the
hospital medical staff if the Office of Rural Health certifies that the
individual:
     (1) Has a rural practice that amounts to
60 percent of the individualÂ’s practice; and
     (2)(a) If a physician or a physician
assistant, can cause a patient to be admitted to the hospital;
     (b) If a certified registered nurse
anesthetist, is employed by or has a contractual relationship with one of the
hospitals described in ORS 315.613 (1); or
     (c) If an optometrist, has consulting
privileges with a hospital listed in ORS 315.613 (1). This paragraph does not
apply to an optometrist who qualifies as a “frontier rural practitioner,” as
defined by the Office of Rural Health. [Formerly 316.144]
     315.619
Credit for medical staff at type C hospital. A member of the medical staff of a type C hospital who meets the
requirements of ORS 315.616 (1) and (2)(a) is entitled to the tax credit
described in ORS 315.613 if:
     (1) The hospital is isolated due to
geographic conditions, complies with rules relating to emergency response and
is subject to such other special factors as the Office of Rural Health may
prescribe; and
     (2) The hospital is designated by the
Office of Rural Health as being subject to particular problems in recruiting
and retaining medical staff and is located in an area that is medically
underserved. [Formerly 316.146]
     315.622
Rural emergency medical technicians. (1) A resident or nonresident individual who is certified as eligible
under ORS 442.550 to 442.570 and who is certified as an emergency medical
technician under ORS chapter 682 shall be allowed a credit against the taxes
that are otherwise due under ORS chapter 316 if the Office of Rural Health
certifies that the individual provides volunteer emergency medical technician
services in a rural area that comprise at least 20 percent of the total
emergency medical technician services provided by the individual in the tax
year.
     (2) The amount of the credit shall equal
$250.
     (3) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117. If a
change in the status of a taxpayer from resident to nonresident or from
nonresident to resident occurs, the credit allowed by this section shall be
determined in a manner consistent with ORS 316.117.
     (4) As used in this section, “rural area”
means a geographic area that is located at least 25 miles from any city with a
population of 30,000 or more. [2005 c.832 §63]
     Note: Section 66, chapter 832, Oregon Laws 2005,
provides:
     Sec.
66. Section 63 of this 2005
Act [315.622] applies to tax credit certifications issued by the Office of
Rural Health on or after January 1, 2006, and before January 1, 2011. [2005
c.832 §66]
     315.624
Medical care to residents of
     (2) The amount of the credit allowed under
this section shall be equal to the lesser of:
     (a) $1,000 for every eight residents to
whom the physician provides care at an Oregon VeteransÂ’ Home; or
     (b) $5,000.
     (3) The credit allowed under this section
may not exceed the tax liability of the taxpayer for the tax year, and a credit
allowed under this section that is unused may not be carried forward to a
succeeding tax year.
     (4) A nonresident shall be allowed the
credit described in this section in the proportion provided in ORS 316.117. If
a change in the status of a taxpayer from resident to nonresident or from
nonresident to resident occurs, the credit allowed by this section shall be
determined in a manner consistent with ORS 316.117.
     (5) In order to qualify for the tax credit
allowed under this section, the physician claiming the credit must submit with
the physicianÂ’s tax return a letter from the Oregon VeteransÂ’ Home at which the
physician provided care to residents, confirming that the physician missed no
more than five percent of the physicianÂ’s scheduled visits with residents of
the home during the tax year.
     (6) In the case of a shareholder of a
corporation or a member of a partnership, only the care provided by the
individual shareholder or partner shall be considered, and the full amount of
the credit shall be allowed to each shareholder or partner who qualifies in an
individual capacity.
     (7) The Director of Veterans’ Affairs
shall assist the Department of Revenue in determining if a taxpayer claiming a
credit under this section qualifies for the credit. [2007 c.843 §3]
     Note: Section 9, chapter 843, Oregon Laws 2007,
provides:
     Sec.
9. Section 3 of this 2007
Act [315.624] and the amendments to ORS 316.680 by section 2 of this 2007 Act
apply to tax years beginning on or after January 1, 2008, and before January 1,
2012. [2007 c.843 §9]
     315.628
Health care services under TRICARE contract. (1) A health care provider who enters into a contract for the first
time on or after January 1, 2007, to provide health care services permitted
under a TRICARE contract to patients enrolled in the TRICARE military health
care system shall be allowed a one-time credit against taxes otherwise due
under ORS chapter 316 in the amount of $2,500.
     (2) A health care provider who has a
contract to provide health care services permitted under a TRICARE contract to
patients enrolled in the TRICARE military health care system shall be allowed a
credit each tax year against taxes otherwise due under ORS chapter 316 in the
amount of $1,000 if the health care provider actively participates in the
TRICARE military health care system and each tax year provides health care
services to at least 10 patients enrolled in the TRICARE military health care
system. A health care provider who serves patients in a rural community, as
defined by the Office of Rural Health, may provide health care services to
fewer than 10 patients in a tax year and qualify for the credit.
     (3) A health care provider may not receive
a credit under subsections (1) and (2) of this section in the same tax year.
     (4) A nonresident shall be allowed a
credit under this section in the proportion provided in ORS 316.117. If a change
in the status of a taxpayer from resident to nonresident or from nonresident to
resident occurs, the credit allowed by this section shall be determined in a
manner consistent with ORS 316.117. [2007 c.843 §5]
     Note: Section 8, chapter 843, Oregon Laws 2007,
provides:
     Sec.
8. Sections 5 [315.628] and
6 [315.631] of this 2007 Act apply to tax years beginning on or after January
1, 2008, and before January 1, 2012. [2007 c.843 §8]
     315.631
Certification of health care providers; reports. (1) The Office of Rural Health shall
establish criteria for certifying health care providers as eligible for a tax
credit authorized by ORS 315.628 or a deduction from federal taxable income
under ORS 316.680. Upon finding that a health care provider meets the
eligibility criteria established by the office, the office shall certify the
provider for a tax credit under ORS 315.628 or the tax deduction under ORS
316.680. The office may not issue more than 500 certifications under this
section in any calendar year and may not certify more than 1,000 providers
before December 31, 2009.
     (2) Prior to October 1 of each year, the
office shall report to the legislative interim committees on revenue regarding
the number of health care providers who qualify for the tax credit under ORS
315.628 (2).
     (3) Prior to December 31 of each year, the
administrator of the TRICARE contracts with health care providers who provide
health care services to patients in
     Note: See note under 315.628.
     Note: 315.631 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 315 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
CULTURE
     315.675
Trust for Cultural Development Account contributions. (1) As used in this section, “cultural
organization” means an entity that is:
     (a) Exempt from federal income tax under
section 501(c)(3) of the Internal Revenue Code; and
     (b) Organized primarily for the purpose of
producing, promoting or presenting the arts, heritage, programs and humanities
to the public or organized primarily for identifying, documenting, interpreting
and preserving cultural resources.
     (2) A taxpayer shall be allowed a credit
against the taxes otherwise due under ORS chapter 316 for amounts contributed
during the tax year to the Trust for Cultural Development Account established
under ORS 359.405.
     (3) A taxpayer that is a corporation shall
be allowed a credit against the taxes otherwise due under ORS chapter 317 or
318 for amounts contributed during the tax year to the Trust for Cultural
Development Account established under ORS 359.405.
     (4) The credit is allowable under this
section only to the extent the taxpayer has contributed an equal amount to an
     (5) The amount of the credit shall equal
100 percent of the amount contributed to the Trust for Cultural Development
Account, but may not exceed the lesser of the tax liability of the:
     (a) Taxpayer under ORS chapter 316 for the
tax year or $500.
     (b) Taxpayer that is a corporation under
ORS chapter 317 or 318 for the tax year or $2,500.
     (6) The credit allowed under this section
may not be carried over to another tax year.
     (7) The credit allowed under this section
is in addition to any charitable contribution deduction allowable to the
taxpayer.
     (8) In the case of a credit allowed under
this section for purposes of ORS chapter 316:
     (a) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
     (b) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed under this section shall be determined in a manner
consistent with ORS 316.117.
     (c) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each.
     (d) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner consistent with
ORS 314.085. [2001 c.954 §18]
     Note: Section 19, chapter 954, Oregon Laws 2001,
provides:
     Sec.
19. Section 18 of this 2001
Act [315.675] applies to tax years beginning on or after January 1, 2002, and
before January 1, 2013. [2001 c.954 §19]
_______________
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